out Your Tentative Tax: Once you have compiled all your financial records and account information, it is a good idea to do a small tentative tax calculation. Such a calculation can underline the need of any last minute tax saving investment that can be useful. Any extra funds that you may have after evaluating your tax related expenditure can then be wisely used in retirement planning or other essential tools.
Evaluate Your Taxation Strategies: Evaluating your taxation strategy before the end of the financial year is one of the best financial habits to cultivate. Irrespective of whether you are a salaried professional or a business man, self evaluation of taxation strategies gives a great insight into any last minute tax planning that can help you save some tax as well as increase your chances of having a better financial portfolio.
Explore Various Tax Saving Instruments: Once you have evaluated your taxation strategies and have a fair idea about your tentative tax amount for the year, there can be scope for some last minute tax saving strategies. From investing in purchase of capital goods in case of a business owner to donating money for a charitable cause under section 80G of the income tax act that can avail some deductions to investing in pension funds, there are various options depending on your personal financial record. Compiling all financial records latest by last week of December gives ample time to explore all such tax saving instruments that can help you attain better financial health and well being in the long run.