Tax Planning & Advisory
Tax Planning & Advisory
Tax Planning & Advisory is a strategic financial service aimed at optimizing your tax position while ensuring full compliance with applicable tax laws. It involves analyzing your income, investments, expenses, and financial goals to identify opportunities for tax savings through deductions, exemptions, and proper structuring. Whether you’re an individual, a business owner, or a corporate entity, professional tax advisory helps you plan ahead, reduce liabilities, avoid penalties, and make informed financial decisions. With expert guidance, you can align your financial activities with current tax regulations and benefit from efficient, legally sound tax-saving strategies tailored to your unique situation. goes beyond just meeting filing deadlines—it plays a crucial role in long-term financial success.
Last-minute tax planning
You probably know the importance of submitting your investment proofs to your employer on time. You’re also aware that missing the deadline can lead to higher TDS deductions and a reduced take-home salary. Yet, procrastination often gets the best of us, and you might find yourself in the same stressful situation as last year. We get it—calculating taxes and making investment decisions isn’t exactly exciting. But waiting until the last minute can lead to rushed choices and financial mistakes. Don’t worry if you haven’t started yet—you’re not alone. In this blog, we’ll show you four simple, effective ways to complete your tax planning efficiently and avoid unnecessary errors.
Tip #1: You should check your liability for the year
The first step in effective tax planning is to calculate how much income tax you actually owe for the year. Tax planning becomes relevant only if there’s a net tax liability. To get an accurate picture, you need to consider all your sources of income along with the deductions you’re eligible for under the Income Tax Act. Many people miss out on valuable deductions simply because they’re unaware of them. Here are some commonly overlooked deductions that could help reduce your taxable income:
- Tuition fees must be paid.
- Premiums for life and medical insurance
- Allowance for House Rent
- Donations to vetted organisations
Tip #2: Compare NEW vs OLD taxation regime
ou now have the option to choose between two tax regimes—an important shift introduced in the recent Budget. The new regime offers lower tax rates but limits the number of deductions you can claim. To decide which regime suits you best, you’ll need to do a comparative calculation. For example, if you’re a new or casual investor without much capital for tax-saving investments, the new regime might work in your favor. On the other hand, if you’re an experienced investor regularly claiming deductions—such as on home loan interest—the old regime may be more advantageous. And if tax planning feels overwhelming, our experts are here to help guide your decision.
Tip #3: Fill in your insurance gaps first
Assume you need to make new investments in order to lower your tax liability. Here, you should make sure you have enough insurance protection in the form of the following policies:
- Term life insurance
- Mediclaim insurance for Self-insured, family-insured, and parent-insured
- Preventive health screening
For young investors, prioritizing insurance is essential. In the event of an unexpected death of the primary earner or a sudden medical emergency, savings and investments alone may not be enough to protect the family’s financial future. Insurance provides a safety net, ensuring stability during tough times. Think of it as the strong foundation on which you can confidently build your financial future.
Tip #4: Analyze the investment holistically before choosing it.
It’s not only about saving money on taxes when it comes to tax-advantaged investments. It should also assist you in building long-term wealth and meeting your financial objectives comfortably. Consider the following variables before making a tax-saving investment:
- Determine your financial goals and when you will need funds– The longer you have before you reach your goal, the more risk you can accept.
- Decide how much risk you’re willing to take. Simply put, this is the percentage of your investment you’re willing to keep in equity in order to sleep soundly at night.
- To acquire a holistic view of the investment, consider the risk, lock-in time, liquidity, taxation, and other factors, as well as whether the investment is consistent with your financial goals. Don’t be swayed solely by profits.
If you’re short on time to go through detailed tax planning, consider quick and effective options like ELSS (Equity Linked Savings Scheme) and PPF (Public Provident Fund). These are reliable choices for saving taxes while building long-term wealth. Just remember, ELSS is best suited for long-term goals, so avoid withdrawing funds before completing at least 5 years. PPF, meanwhile, comes with a 15-year lock-in period, making it ideal for disciplined, long-term savings.
Conclusion:
Planning your taxes in advance can save you from making expensive financial mistakes that are often difficult to undo. But even if you’ve delayed your tax planning, there are still some quick, effective steps you can take to get back on track. These actions can help minimize risk and ensure your investments align with your long-term financial goals. If you need support, our expert team is here to guide you every step of the way—with deep experience and a strong focus on customer care. Don’t hesitate to reach out—we’re here to make the process smooth and stress-free.