Home Articles Five important tasks to do at the beginning of the new financial...
KEY STORY
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The current financial year (FY ’22) has just begun and there are certain tasks you need to perform at the beginning of the new financial year to manage your finances better.
Taxation regime needs to be decided
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There are now two tax regimes available for a taxpayer to choose from. The latest that taxes taxpayers at a lower slab rate but at the cost of around 70 deductions that he or she cannot avail of.
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This if done at the start of the year will enable better tax planning. Nonetheless, those who have been more deductions as well as exemption under the Income Tax Act will be better off sticking with the old regime.
Plan your taxes now
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You can start with your tax planning exercise right away as many times last-minute efforts do not serve the long term financial goals of the concerned taxpayer.
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The investment opted for availing deduction or the various exemption might not be in line with investor’s risk-profile or may even carry a longer lock-in period.
Contribution towards PPF
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Public Provident Fund (PPF) is one of the most favoured investments and people often invest up to Rs 1.5 lakh to claim deduction under Section 80C.
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However, it is seen that most of the time people invest in PPF at the last moment. It is always advisable to invest in PPF at the beginning of the year itself.
Collection of documents for ITR filing
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You will need to file income tax return soon. It will be better that you start collecting the documents now to avoid the last-minute rush.
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Collect documents such as banks interest statements, mutual funds investment statements from individual fund houses in case you are investing directly.
Submitting form 15G/15H
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In case your income is below the taxable limit and you are not required to pay any taxes then to avoid deduction of TDS by your banker (banks deduct TDS before paying out interest on deposits), you need to submit form 15G or form 15H as applicable.
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These forms are required to be deposited with the financial institution at the start of the financial year.
