Most of the tax payers prepare tax planning only at the eleventh hour when the taxman blows his whistle,but it can be easily avoided by starting your tax planning early.The following steps are involved for planning your tax early
1. Estimate your tax after deducting all tax exemptions from your gross salary.
2. Declare your 80(c) and 80(d) tax exemptions details with your employer during the start of the financial year.
3. Collect all bills for medical bill reimbursement upto 15000 and get it remibursed as n when you get bills.
4. Pay yours n your dependent's medical insurance premium and get exempted upto 20,000 under section 80(d).
5. Get all the bills/receipts for investments under 80(c).
6. Get your rental agreement and rent receipts ready.
7.If you had opted for ELSS, go for SIP and have your SIP statements ready.
8. For home loan borrowers, get the interest and principal breakdown of your EMI payment from your bank.
9. Figure your if there are any capital losses for the financial year and it can be deducted from tax.
10. Include all interest gained from bank fixed deposits in the taxable income.
11. In May, when you get form 16, file the tax by e-filing or with your auditor.