Month of tax saving: Better today, than last hour rush!

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Tax Saving Plans
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Month of tax saving Better today, than last hour
rush!
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• As March knocks the door, we rush to make
  investments in various avenues to save tax. A
  hurried approach often ends up with opting for
  the not-so-right choice for investing our
  hard-earned money. Precisely, if one starts
  planning for investments to reduce the tax burden
  in March, the person will not be able to do a
  proper research for it.
• It is always advisable to start planning for tax
  saving plans  from the first day of a new
  financial year. One procrastinates tax saving or
  tax return filing only to increase the tax burden
  or buy an investment plan which may prove to be
  inappropriate for his or her financial goals.

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Pitfalls of last minute tax-saving

• Chances are higher that one will face hardships
  in meeting the personal or familys financial
  needs during the last couple of months, if large
  chunk of the money goes for making tax-saving
  investments in the last few weeks. However,
  systemic investments throughout the year helps a
  person enjoy a good flow of income and reduce the
  burden in the last few months. When it comes to
  salaried individuals, they should plan the
  investments properly based on the declarations
  made to their employers.

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• Delayed planning and rushing at the last hour
  often lands one in a situation where the person
  buys the wrong investment plans that may not
  suffice the future financial dreams like
  childrens higher education or marriage. As a
  result, even if the person saves substantial
  money from being taxed, he or she may find the
  investment made as inadequate or not serving all
  the purposes. 
• Also, one cannot rule out the chances of
  mis-selling, if a financial instrument like life
  insurance is bought at the last hour. People tend
  to buy any life insurance plan based on the
  suggestions made an agent without adequate
  research on the same plan. Though the agent may
  pitch for a particular life insurance plan he
  thinks suitable for a person, it may prove to be
  mis-selling later if the person does not read the
  features of the products and prospects of return
  and insurance cover carefully. 

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• While buying a life insurance plan to save tax,
  alongside keeping in mind insurance cover, one
  should plan much ahead of tax filing deadline.
  Buying such a financial instrument takes time for
  processing and background check before the policy
  is practically issued.
• Benefits for an early bird
• An early bird in investment planning always opts
  for the investment plans with best returns and
  covers after a thorough research. Early
  investment planning ideally helps one spread out
  the burden of investment cost. To put it simply,
  if one plans to enjoy the same standard of living
  in January-March quarter what the person enjoys
  in the other quarters, investments plans have to
  be jotted down in the beginning of the year and
  keep the money aside for that purpose. It is
  never advisable to spend lions share of the
  income in January-March quarter for making
  investments to save tax.

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• One of crucial benefits of planning for
  investments early is getting the best plan for
  meeting future financial goals at a better cost.
  Early planning helps one think of all the
  financial needs in future and buy a suitable
  investment plan that helps save maximum tax and
  secure future at the same time.    
• Therefore, please ensure that you make
  investments to save tax today, and do not
  procrastinate for the last date of tax filing.
   Jiyo Befikar!  
• Source http//lifeinsurance.bajajallianz.com/tax-
  insights/month-of-tax-saving-better-today-than-las
  t-hour-rush-2/

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