How to go about effective tax planning?

You might be doing exceptionally well in business, but is handling books of accounts your forte too? Are you prompt at filing tax returns and replying to the notice served by the tax authorities? If not, then it is better to get tax planning done from those who will not just help in filing the returns, but also help you in making investments in tax saving schemes so that you make good returns on the investment made. From handling individual accounts to managing the accounts of the corporate houses, tax planners are smart and diligent people who understand the dynamics of the tax system and ensure that there is compliance with the laws laid down.


What is the right time to start tax planning?

As the golden rule goes, the sooner the better, and the same applies to tax planning as well. This will save you from last-minute hassles towards the year-end and will help in better planning for your financial goals. Channelising your funds in the right instruments is important for maximum returns and this is possible if you research well about the different instruments and invest according to your needs.

What are the different kinds of tax-saving strategies?

Tax saving strategies aim at minimising your tax liability and ensuring that you get maximum returns at the end. You can consider the following steps while framing your tax-saving strategy:

Know your tax liability: You must have a clear idea about how much tax you owe to the government. This will help you in understanding the deductions you can claim and accordingly you can divide the investments into 12 instalments so that the financial burden gets reduced.

Choose the right instrument: You must talk to professional tax planners before selecting any tax saving instrument. These professionals will access your requirements and financial goals and accordingly will advise you on the right kind of financial instrument available in the market.

Risk appetite: Every financial instrument you invest in has some risk associated with it. Depending on your risk appetite and financial condition, the tax planner will recommend the plans that meet your needs.

Lock-in period of the instrument: Tax saving instruments have a lock-in period. Make sure you know the details well before you park your funds.

Get in touch with the team at Wills & Trusts Wealth Management by calling 01844212907 or login at www.willsandtrustswealth.com for better understanding of the services offered.

Location: Oxfordshire, UK

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