The best time to start planning your tax-saving investments is at the beginning of the financial year. Most taxpayers procrastinate till the last quarter of the year, resulting in hurried decisions. Instead, if you plan at the start of the year, your investments can compound and help you achieve long-term goals. Remember, tax-saving should be an additional perk and not a goal in itself.
As a smart investor, one should look for tax saving investments, which not only provides the benefit of tax exemption but also helps to earn tax-free income. There are many smart ways to save taxes and enjoy the maximum savings possible. However, for most of the individuals, tax-planning is a let’s do it later affair. A smarter approach is to start investing in the early quarters of the financial year so that one can get time to sensibly plan and can avail the maximum returns on investment from different tax-saving investments.