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Maximize your Returns this Fiscal year

It is always crucial to ensure that you are prepared for the upcoming financial year in the best way possible, which can help you attain the maximum level of financial success.

This article will help you to set your financial goals, identify potential areas of improvement and make any necessary changes to your financial strategies to get you on track to achieve your Financial goal and be well prepared for the adverse.

Why is financial planning Important:

1. Income Management: Financial planning helps manage money effectively by strategizing monthly spending, calculating taxes, and determining savings.

2. Improved Cash Flow: Analyzing spending habits and budgeting assists in prioritising activities and reducing overhead costs, thereby enhancing overall capital.

3. Better Investment: Tailored financial plans consider individual situations, risk tolerance, and long-term goals, aiding in making optimal financial decisions.

4. Enhanced ROI on Portfolio: Financial planning integrates investment strategies based on goals, risk tolerance, and liquidity, maximising portfolio returns.

5. Inflation Secured: Careful financial planning prepares for future inflation, safeguarding finances and ensuring a more secure future.

6. Guarded Retirement Plan: Starting investments early and utilising compounding maximises retirement corpus, ensuring a comfortable post-retirement existence.

Analyzing Past Performance

To progress, reflection is key. Evaluate your achievements and areas for improvement. Utilize these insights to shape your business strategy, ensuring it remains adaptable and evolves over time.

Applying For Insurance

Assess your life and health insurance promptly, rather than waiting until tax season or March 31st. Remember, insurance isn't just for tax benefits; it's essential for critical needs. It is always advised to ensure your insurance coverage is sufficient now, not later. While a general guideline suggests life insurance should be ten times your annual income, it's wise to consider factors like assets, loans, spouse's income, and future goals for accuracy. For example, a 40-year-old couple with two children should aim for a minimum cover of Rs 10 lakh, reassessed every five years.

Understanding the Taxation Policy

When you understand the tax policy of our country, it will help us more efficiently plan our finances. First, we got to understand the new as well as the old tax regimes because you can have a look at the following regimes and choose which one to go for to file your taxes.

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Along with selecting which tax regime to go with, you can inculcate The following investment policies to get the benefit of tax exemption and a decent to high return from the investments made.

(1) Contributing to NPS

Employers can contribute to the NPS for salaried individuals, not for self-employed ones. The contribution can match or exceed the employee's. For central government . employees, the limit is 14% of salary, for others, it's 10%. The contribution is deducted from the payslip. Overall, there's a Rs. 750,000 limit for employer contributions to PF, NPS, and superannuation.

(2) The Agniveer Corpus Fund

Contributions to the Agniveer Corpus Fund by both applicants and the central government qualify for deduction under Section 80 CCH of the Income Tax Act. Exemptions apply to income received through the Agnipath Scheme by the applicant or their nominees. Soldiers enrolled in the scheme receive benefits like rations, allowances, and compensation for death or disability. Notably, this deduction is available under both regulatory frameworks.

(3) Invest in Property with a Loan

Government housing initiatives like PMAY and DDR Housing Scheme aim to improve housing accessibility, while tax provisions like Sections 80C and 24B ease financial burdens. Section 80C allows deductions on the entire yearly principal loan repayment, capped at 1.5 lakh, and Section 24B grants tax exemption on home loan interest up to Rs 2 lakh annually. For rented properties, the entire interest component is deductible from rental income, with a restriction of Rs. 200,000 for offsetting losses. Additionally, Section 80 EEA offers extra deductions for first-time homeowners meeting specific conditions.

(4)Government Schemes

Government schemes offer attractive returns and tax benefits, with tax deductions available under Section 80C for investments up to Rs 1.5 lakh annually. Tax exemptions are accessible through investments in instruments like the Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), National Pension Scheme (NPS), Public Provident Fund (PPF), and National Pension Scheme (NPS).

Other Tax saving Options are-


Use Credit Cards in the Right Way

Begin by gradually incorporating expenses onto your credit card instead of doing so all at once. Avoid applying for multiple credit cards, as they can lead to impulsive spending and potentially harm your credit score. Remember that unpaid bills accumulate interest, so prioritise paying the full amount by the due date rather than just the minimum payment. Use secure sites for online shopping and never share credit card details with anyone.

Tackle high-interest debt

An essential aspect of any financial strategy involves reducing high-interest debt, such as credit card balances, payday loans, title loans, and rent-to-own payments. The interest rates on these debts can be excessive, resulting in paying back significantly more than what was borrowed. If you're facing challenges with revolving debt, consider options like a debt consolidation loan or a debt management plan could be beneficial. These solutions allow you to consolidate multiple debts into one monthly payment at a reduced interest rate.

Investing in the BEST 

Investing is the best way to multiply your income or surplus money 

you have to get the best returns possible. This could start from identifying what kind of investment is best for you. The possible investment profiles range as the following-

   >Capital Market (Equity, Derivatives, Currency, Debt, Commodity)  

   >Mutual Funds

   >Real Estate

   >Crypto Currency

   >Maintain Fixed Deposits and Government Schemes

   >Other assets, such as jewellery, luxury watches, etc


Here, you can decide by understanding if you are ready to take higher risk Investments in equity or   Funds is the one, while if you are planning to take a safer route then Fixed Deposits and Government Schemes would be the option.

Building a Strategic Plan 

Developing a strategic plan is crucial for reaching your business objectives. It maps out the necessary actions, prioritises tasks, and anticipates obstacles. Engage all relevant parties in its creation to ensure thoroughness and feasibility. Additionally, crafting a budget is vital. It enables you to monitor finances effectively and maintain fiscal responsibility. Be sure to accommodate any potential shifts in income or expenditures for the upcoming fiscal period.

The Dos, while planning finance

1. Establish Financial Goals  

Effective financial planning begins with setting clear financial objectives. It's crucial to define your goals with specific timelines for achievement, dividing them into short-term, mid-term, and long-term categories.

2. Prioritise Financial Literacy  

Enhancing your financial knowledge is fundamental to managing your money better. Educating yourself about financial matters enables you to make informed decisions regarding saving, spending, and investing, addressing common questions about budgeting, investments, and taxes.

3. Monitor Your Spending  

Tracking expenses is a key practice in financial planning. It provides insight into your spending patterns, aiding in prioritising expenses, curbing overspending, and aligning with financial goals.

4. Develop a Realistic Budget  

Saving more towards long-term goals necessitates a well-structured monthly budget. Begin by meticulously tracking expenses and income, identifying areas for potential savings. Regularly review and adjust your budget to align with financial objectives, gaining deeper insights into your finances over time.

The Don'ts, while planning finance

1. Avoid Overspending & Impulsive Purchases  

Maintaining financial stability involves steering clear of overspending and impulsive buying. Create and stick to a monthly budget to ensure consistent savings and mindful spending habits. By monitoring your expenses and adhering to a budget, you can avoid impulsive purchases and progress toward your financial objectives.

2. Steer Clear of Debt Traps  

Consistently missing repayments or maxing out credit cards can lead to a debt trap. Stay disciplined by managing repayments effectively and reducing expenses to tackle existing debts. Prioritize repayments and explore strategies to become debt-free.

3. Invest Wisely, Avoid Emotional Decisions  

While investing is beneficial for long-term savings, it's crucial to research thoroughly and avoid emotional impulses like greed or fear. Make informed investment decisions based on research rather than emotions to maximise returns and mitigate risks.

4. Regularly Review & Enhance Your Financial Plan  

As your circumstances change, so should your financial plan. Regularly review and update your plan to adapt to evolving income, expenses, and goals. By doing so, you can capitalise on opportunities, ensure adequate savings for retirement, and maintain financial security.


The ideal time to initiate financial planning and investments is at the start of any financial year. Many taxpayers tend to delay until the final quarter, leading to rushed choices.  The professional financial advisor prioritises the investor's best interests and dedicates their time and expertise to overseeing their portfolio. They possess an in-depth understanding of various fund types and employ diverse investment tactics. Therefore, this tells us how beneficial professional help can be if taken.

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