FY 2025-26 - Financial & Tax Planning

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FY2025-26 – Financial & Tax Planning Checklist

✅ Start of the Financial Year

  • Reassess your financial and tax strategies early.

  • A clear plan ensures disciplined execution throughout the year.

🧾 Tax Planning

  • Plan Early: Avoid last-minute decisions that often lead to poor investments.

  • Maximize Returns:

    • Contribute to PPF and SSY by April 5th to earn full-year interest.

💡 Financial Health Check

  • Emergency Fund: Review and top-up your emergency reserve.

  • Goal Review: Revisit timelines and corpus needs for short and long-term goals.

  • Big-Ticket Expenses: Plan for major costs (e.g., home purchase, travel, renovation) by setting savings targets.

📉 Leverage Recent Changes

  • Home Loan:

    • Post-RBI repo rate cuts, check if your bank reduced your home loan rate.

    • Consider refinancing if better rates are available.

  • EPF Contributions:

    • Interest on EPF above ₹2.5L/year is taxable.

    • Evaluate Voluntary Provident Fund (VPF) for additional retirement savings.

⚖️ Tax Regime Comparison

  • Union Budget 2025: The new regime is more appealing—reassess your suitability.

  • Old Regime: List all applicable deductions and exemptions (80C, 80D, HRA, etc.).

  • Make an Informed Choice: Compare both regimes to optimize your tax savings.

📊 Investment Strategy Alignment

  • New Tax Regime:

    • Avoid making unnecessary tax-saving investments.

    • Inform your employer of your selected regime.

    • Declare investments correctly to avoid excessive tax deductions.

  • Old Tax Regime:

    • Focus on tax-saving instruments like PPF, ELSS, NSC, etc.

    • Use systematic investments to manage cash flow and benefit from rupee-cost averaging.

🏠 Tax-Saving Opportunities

  • Home-Related:

    • Claim tax benefits on:

      • Principal Repayment – Section 80C

      • Interest Repayment – Section 24

      • Leave Travel Allowance – Section 10(5)

  • Health Insurance:

    • Deduct premiums under Section 80D:

      • ₹25,000 for self/family

      • ₹50,000 for senior citizens

🗂️ Efficient Process Management

  • Investment Calendar:

    • Track investments, advance tax deadlines, and ITR filing dates.

  • Avoid TDS on FD/RD:

    • Submit Form 15G/15H if income is below the taxable limit.

    • Consider increased TDS thresholds for senior citizens and rent income.

📌 Additional Pointers

  • Customize: Adapt strategies to your income, goals, and risk profile.

  • Seek Guidance: Consult a financial planner or tax advisor for complex situations.

  • Review Periodically: Update your plan based on life events or changing financial conditions.

⚠️ Disclaimer

This information is intended for general guidance. Tax laws are subject to change. For personalized advice, consult a certified tax or financial advisor.

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