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Five reasons – plan tax-saving right now

Taxpayers have five strong reasons to get rid of the habit of last-minute tax-planning. Make more money by making early investments.

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The article lists down five reasons why taxpayers should start planning tax-saving investments in the month of April i.e. the start of the financial year. These reasons include reduced burden in last quarter; money has more time to grow, purchase amount averaged out, no hassle, time to analyse and no delay in claiming benefits ability.

Your income increases at the start of the year, therefore, you have an additional amount at your disposal. It is better to invest that amount rather than spend it mindlessly. There are various instruments where you can make investments. These are PPF, new pension scheme, Sukanya Samriddhi, etc.

Early investment means you will earn the interest for a longer period. Hence, you will make more money.

The article suggests that if you are investing in tax-saving mutual funds or unit-linked insurance plans, then investing on a regular basis at different intervals throughout the year will enable you to average the cost of purchase.

Moreover, planning provides you ample time to analyse all available options.

Source : Money Control