Check and review last year's return. This is to ensure you won't miss out on any deductions and credits in the current year.
Get organized by setting up a simple file system, and separating your information by type, income, deductions, credits and so on.
Keep track of all your expenses and retain receipts even though you don't necessarily have to submit them with your return.
Keep more of your year-end pay cheques by equitably distributing the deductions across the 12 months.
Make your tax payments on time if you are self-employed and required to pay tax instalments during the year. This way you'll also avoid interest and penalties.
Perform a check-up on your financial health by reviewing your overall financial plan. It's easier to measure your results against objectives when every aspect of your financial life is laid out before you.
Consider taking help of a professional tax preparer. It does cost some money but consider the amount you can save in taxes and anxiety. And in case of a dispute, your preparer can represent you at the Income Tax department.
One tax-saving strategy you shouldn't ever overlook: Be sure to talk to your professional adviser to ensure you take full advantage of every tax-reducing opportunity available to you.
Well, maybe it's a little too late to practise early tax preparation this fiscal. But try it out next year and you will certainly keep more of what you earn.
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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online
These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs
These Application Forms can be used for buying regular mutual funds also
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