With just a few months to go for the end of the financial year it is time that individuals pay attention to their tax saving investments and ensure that there is some action that they start to take on the issue. This is significant because it should not happen that there is the last minute rush which puts a lot of pressure on the individual and also results in a lot of tension. Here are five reasons why a start is needed today for the individual to concentrate on their tax saving route.
Allows equity investments
One of the features of investments into equity is that these should not be in a lumpsum and hence need to be spread out over a period of time. In case of a last minute rush it would not be possible to spread it out as whatever is the amount of investment that needs to be done would have to be done in a single shot and hence would not allow itself to be invested in equities. There can be the equity option like the Equity Linked Savings Scheme which can be chosen but the risk here would rise significantly in a lumpsum investment and hence the presence of time would ensure that the amounts can be spread out and equity investments become a viable investment route.
The presence of several months ensures that the investor can look at several options that are present in front of them and then make the required choice that will meet their needs. There is no need for them to actually ensure that they choose only one out of the choices present because they can plan according to what they require and this would be reflected in the choice that they end up making. It opens up additional options rather than the usual insurance policies or national savings certificates that one might have chosen in case of a last minute rush.
Less financial pressure
There is also a lesser amount of financial pressure when the amounts are spread out because they will not all come in the month of March and hence the last few months of the financial year will not be a crunch time. This is all the more important this year due to the fact that the Section 80C limit has been increased to Rs 1.5 lakh and hence there would have to be additional investments that need to be made this year which will put some element of pressure if all of this is done at the end of the financial year.
Benefit in future years
Such a step of ensuring some planning at this period of time could actually end up being a blessing for several years in the future also as there might be some elements where there is a recurring payment that has to be made. In case of such recurring investments the individual would be spared all the payments coming in the month of March. The spread out of the amount this year would be followed in the future years too and this would mean that there is some relief for a longer time period that is actually visible.
Needs are met
The goal of any financial investment should be that they should end up meeting the needs or goals that have been set by an individual. Every effort should ensure that the end results point in this particular direction and hence the effective planning since this month itself will give the investor the chance to ensure that this is met. The investor will be able to direct all his efforts towards meeting his goals and the success here would be significant for them as it would mean relief on several additional fronts too. Tags Arnav Pandya Section 80C financial investment tax several additional fronts too.