Plan your Tax Investments Before March 31

Bangalore: It's time to pull your old investment files and seek advice from your tax consultant to calculate your tax saving investment for the year, as the tax season is back again. It is a very common practice that people are generally pushed towards a product by their neighbors, relatives or friends, who actually happens to be distributors, instead conducting a research themselves.

The best way is to plan your tax investments from the beginning of the financial year, rather than panic at the last minute and make mistakes. Listed below are few tips that will prevent you from making mistakes this year.

Estimate your Tax-Saving Requirement

There are possibilities to miss out on certain avenues when you have to meet the deadline in a rush. For instance, there are many tax-payers who tend to make mistakes as most of them are unaware that section 80C facilitates deductions of up to Rs.1 lakh, including provident fund (deducted by the employer) and tuition fees paid for children's education.

Apart from this you should take into consideration if any of the life policies you may be paying premiums for and repayment of home loan principal is eligible for deduction. It is advisable to evaluate your assortments before making tax saving investments.