1. Budgeting & Tax Planning
Create a budget by analysing what expenses have gone up (tuition fee, rent, health insurance premium, etc), and if any increment in your income is on the cards. Also, planning your taxes at the start of a new financial year is essential to set the tone for the right investments that save you taxes not just at the end of the year, but from the first month itself. Scan through various investment schemes that offer high rate of returns and are mostly exempted from income tax. Start investing money from April itself to benefit from compounding and put your money at work.
2. Declare Investments
Declare the investments you intend to make in the new financial year via Form 12BB, for a larger take home salary. Timely declaration of your investments and other financial items like home loan, LTC, HRA, etc will give your accounts team the right calculation to deduct TDS, which in turn will increase your salary in hand.
3. Submit Form 15G & 15H
People whose annual income is less than taxable, must submit Form 15G and 15H at their bank branch at the beginning of the year in order to limit their bank from deducting TDS on interest income more than Rs.10,000.
4. Download Form 26AS
Download Form 26AS from the website of Income Tax department to tally that Tax Deducted at Source (TDS) by all stakeholders (including your employer, clients, tenant, bank, etc) has been credited aptly to your Permanent Account Number (PAN).
5. Review
Lastly, review your financial goals and see what you have accomplished in the last financial year. Evaluate your investment portfolio and see if it requires tweaking in terms of selling some scrips and buying new ones, withdrawing from a particular investment instrument and clubbing the money for better returns, or arranging funds to buy a new home/car or any other asset.