Taxation taxing you out? In uncertain times, the need to optimally plan your taxes becomes even more important. If you plan well in advance, you benefit from enough time to do a thorough financial standing, devise investment strategies to offset taxes and hedge against long term hazards that are a consequence of impulsive tax planning.

With a quarter to the deadline, here’s how you should go about your tax planning and payment to do list. 

1. Do Away With The Limbo                 

You need to prioritize filing taxes. Begin with understanding and collating your yearly records. You need to learn what tax bracket applies to your income, what are the documents you need, how key tax concepts work and the steps you can take to deduce your tax bill. Once you’ve your basics in place you can reach out to your financial planner to devise tax-planning strategies, personalized for you. To ensure you can make the most, get started when you have time in hand. This will help you to process this activity without stress and ordeal. 

2. Retirement Planning                          

If anything last year has taught us, it is to prepare for the worst and best times. Whether you are starting out or inching closer to the golden years of your life, resolute to retirement planning aggressively. 

3. Focus on Lowering Net Investment Income

Easiest way to cut down on tax liability is to minimize your net income. To achieve this, look at maximizing and optimizing your retirement investment. Your net taxable income calculated after deducting tax savings from your gross income. (Gross Income – Tax Savings = Net Income) 

4. Gain From Estate Planning

Why wait for tomorrow when you can secure your loved ones today. Estate planning is more than just drafting a will. With succession planning you can legalise all your assets and beneficiaries in case of an untoward occurrence. This ensures minimal legal disputes in your absence. You can also transfer any assets as gifts to your loved ones. This not only lowers your tax liability but also ensures that you’ve gifted them the present while you’re around. 

5. Gift of Giving

Do good, earn karma points + tax benefits. To be able to take advantage, you need to donate to charities that are government registered. You can also give to organizations such as the PM’s fund or political party you support to avail tax claims for charity. 

6.  Insure your health, the real wealth

According to the Income Tax Act, you can avail tax benefits on premiums paid up to a certain amount. This also applies to premiums paid for your blood family. For senior citizens the limit is Rs 50,000/- and for others it is Rs 25,000/- You will not be at an advantage if you are employed full time as well as own a startup company. Talk to your financial planner to see how best you can avail health insurance as well as gain a tax break on the same.