Financial year 2016-17 was an eventful one for savers. Everything from demonetisation to fall in interest rates, all resulted in heightened uncertainty. However, with the year coming to an end, here is a handy checklist of things you need to do before 31 March.
1) Make sure that the 80C investments are done. Rs 1.5 lakh limit for you and spouse (if applicable). Invest in public provident fund, National Savings Certificate, life insurance premiums, senior citizen savings schemes and tax saving mutual funds, etc.
2) Check your short-term capital gains from stocks/ mutual funds – book losses (if any) from underperforming mutual funds or stocks.
3) Check your other sources of income and make sure to pay timely advance tax to avoid interest payment later.
4) With only five working days left, do not generate income by means of selling assets like immovable property, mutual funds, stocks and bonds etc. If possible postpone it to April, i.e. next financial year.
5) Make declarations and give proofs to your company for components like house rent allowance (HRA)/ interest/ loss from house property/ 80C declarations etc.
6) Switch fixed deposits to debt funds. This is applicable to those in 20-30 percent tax bracket. Fixed deposits attract TDS. By moving to debt funds now, you can start the next financial year with a clean slate.
7) Get income tax exemption certificates for deductions under Section 80G (donations) from respective parties.
8) Review your term insurance. In case, there is a gap in Section 80C tax saving, buy a term insurance.
9) If interested, claim additional deduction of Rs 50,000 by investing in National Pension Scheme.
10) Exchange old Rs 500 and Rs 1,000 notes before 31 March (applicable only for non-resident Indians).
The author is director, Enrich Wise, a tax planning and investment advisory firm.
Published Date: Mar 24, 2017 15:07 PM | Updated Date: Mar 24, 2017 15:07 PM