Simple Tips to Make Income Tax Planning Simpler

"The hardest thing in the world to understand is the income tax." ~ Albert Einstein

While many of us are experts, most would not shy away from confessing that they belong to the genre of Albert Einstein who gets boggled with the formalities and numerical calculations associated with Income tax filing. Exclusively for this tribe of Albert Einstein who get nervous at the end of the financial year, here are some simple tips to make things simple…or at the most simpler.

Make friends with the word ‘Income Tax’

The fear they say is all in the mind. They first thing you therefore need to do is get your mind rid of the phobia. Trust me, the things are not that complex as they sound in the first place. It is only humans that made the procedures and it is only humans like us that become CAs and tax planners helping us simplify things. You don’t have to be professional in the matter but it is always advisable to get basic knowledge on the subject to atleast know what your CA actually means when he says something on the subject. Gradually you will notice, you know much more than the ABC of tax planning.

Educate Yourself

The best way to become comfortable with the income tax laws is to educate yourself. Knowledge is the only way to get rid of the fears of ignorance. The easiest way to gain information these days is to trawl the net. You put the keyword and search engine will get you scores of results vital to your search. Besides, there are many guides and reference books available in the market that claim to make tax filing simpler for you. Moreover, you may request your friends, siblings or colleagues to guide you in the matter.

Be Methodical Round the Year

The best way is to avoid March phobia is to keep yourself organized round the year. Keep a record of your investments, insurance policies and incomes from various means by carefully keeping the papers in a file. Also jot down relevant points in diary to keep a ready reckoner of investment and income. A well-organized diary and folder will make this exceedingly simple for you.

Invest Wisely

Prudent investment decision will not just help you save on your taxes but also help you improve your financial health in the long run. Keep your eyes and ears open to new and more attractive schemes being launched in the market that assure you a handsome saving on income tax. Allocate your savings in a mixed portfolio of insurance, fixed deposits, mutual funds and stocks to help your money grow and save your taxes. Don’t wait for the last moment but make small investments round the year to avoid March blues.

Take Guidance from your CA

Most importantly, take guidance from your CA. A professional CA will give you tips on saving taxes and help you in filing income tax and also claim necessary return. By paying a small fee you will be able to fill up your taxes in the right manner and get rid of hassles. These days there are lot many CA firms and agencies that offer you expert guidance on investments and tax planning and help make things simple and convenient for you.