March…. Time for Tax Planning and Investment

Being the last month of the financial year, March is very crucial for tax planning and investments. This is the time when you should revisit your financials…your bank account statements, incomes, expenses, investments and other financial transactions. Here are some quick reference points you should check and consider before the end of the financial year i.e. 31^st of March.

(1) From the FY 2023-24 (AY 2024-25), new tax regime shall be the default tax regime. It means, if old tax regime is beneficial for you and you want to file your ITR for AY 2024-25 under the old tax regime, then you will have to specifically opt for the same before filing the ITR, otherwise new tax regime will be applicable to you by default. Please note that if you skip the due date of filing the return, then you will have no choice of tax regime and you will have to compulsorily file the ITR in new tax regime only.

To understand the difference between the old tax regime and new tax regime and to know which one should you opt for, please refer to my blog on the link https://hansinibuch.blogspot.com/2023/04/new-tax-regime-vs-old-tax-regime-what.html.

(2) Check that all your tax saving and even non-tax saving investments are done. Tax saving investments will help you save tax in case you opt for old tax regime. Even if you are going to opt for the new tax regime, make sure that your regular investments are done for FY 2023-24. As we know, investments are not only made for tax saving but they are made for long term wealth creation also.

(3) Check that your life insurance premium, medical insurance premium and premium for any other insurance are paid for this financial year.

(4) Check that you have receipts in soft copies and / or hard copies for all the amounts paid during the year for life and medical insurance premiums, schools fees for your children, donations, NPS and other tax saving investments.

(5) Visit your Chartered Accountant to estimate your tax liability and to check whether any tax saving investments are required to be made or not for this financial year. Check whether any advance tax is payable by you. If it is payable, then pay it before 15^th March, 2024.