With the due date of filing income tax for individuals and corporates that do not need audit, coming close to an end, you may start preparing for next financial year. Take a stock of where you might have saved this year.
Did you pay interest on late payment of tax?
Take stock of your taxable income and how much tax your employer is deducting. Note down your investments and ensure that you have paid your tax through your employer or as Advance Tax. You may save substantial bucks here. Refer to Interest on Delay in Paying Income Tax (234A, 234B, 234C).
Did you invest sufficiently under Section 80C?
Section 80C lets you invest Rs 100,000 in a financial year and you save tax on your investment. If you were short of investments last year, look at options this year. It may be worthwhile to invest both to save tax and to save for your future. You may buy insurance, pay principle on your home loan, deposit more in PPF etc.
Did you file for your claims under Sundry medical and medical insurance?
If you incurred expenses and were late in submitting claims then be prompt this time. Organizing all the documents may be helpful. Before that, you need to know the policies. Take a look at the policies to ensure that you are taking full benefits.
Did you struggle for all the tax documents last year?
People tend to keep procrastinating the organizing of documents until the pile of papers become a mess and then some papers/receipts may not be found. Keep an enclosable folder to retain all your income and investment related papers. Refer to this folder at least once in a quarter.
Did you need to file correction on tax returns?
If so, consult with your Chartered Accountant (CA) friends before filing returns this year. If you think filing tax for you is complicated then take help from a CA. You may save more by paying a CA and you may spend your available time in your work, business or with your family.
Overall, start preparing now to save until the end of financial year.