Financial To-Do's as 2013 winds up

Dec 30 2013, 11:33 IST
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There are a number of tax saving options that can be useful in saving tax. (Thinkstock) There are a number of tax saving options that can be useful in saving tax. (Thinkstock)
SummaryThere are a number of tax saving options that can be useful in saving tax.

the under privileged, all donations and charity can avail you deductions up to 50 to 100 % under Section 80G of the income tax act. While deduction for donations made cannot exceed 10 per cent of gross total income, it makes more sense to donate when the charitable organizations appreciate the gesture rather than to donate just before the end of the financial year only to save some tax.Explore Other Tax Saving Instruments: The end of the year is the best time to evaluate your personal finance goals for the New Year as well as commit tax planning for the current financial year. There are a number of tax saving options that can be useful in saving tax. The earlier one commits to tax planning, the better the chances of effective tax management. A lot of people end up paying a hefty tax only due to poor tax planning. Explore tax saving instruments like Provident funds, National Savings Certificates and Senior Citizens Savings Scheme and other schemes like Section 80D for payment of health insurance premium. The sooner one starts to plan; the better it is for the overall financial well being.

Get Your Financial Books in Order: Do not wait for the last week of March to get your financial books in order. The end of the year is the best time to get all your financial books updated to avoid the last minute jitters before the end of the financial year. It is useful to update all your bank account statements and any Tax Deducted at Source (TDS) certificates and compile them in your financial folder updated till December. If you have made a donation to any charitable organization make sure that you collect a valid receipt to claim deduction u/s 80G. Compute your tax for the year and assess your profit and expenditure till December to give you a better insight into the future tax planning that an be useful in saving tax for the current financial year before the March 31 deadline.

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