⏰Best Time To File ITR & Why Einstein Was Wrong ❎
Hey Fam!
Financial year 2023-2024 has called it quits and, whether you like it or not, the tax frenzy is underway! But unlike what Einstein’s opinion on taxes from all those years ago before FinCocktail came to being, income tax doesn’t have to be so complicated, ugh!
Much to what you would’ve gathered from the subject line, when to file for ITR is the next big question. “What can I do now to make the next ITR better?” is a close second and that’s what we’ve attempted to answer, in this edition.
Although there’s a lot of comprehensive advice in this newsletter here’s a non-negotiable rule for a quick tip: Under the slab or over, filing ITR is must!😉✨
Now here’s what’s in store for you:
Market performance & the Indian economy
Niyati’s 2 cents on best time to file ITR
Sayali’s take on tax planning for 2024-25
Binge of the month
A lot of know-how for 4 mins of your time!
‘Sup with the market
This is why we absolutely love our Market Moves section: it clearly puts things into perspective. Even after what felt like a month of perennial decline, when we look at it in totality, March has ended on a green overall!
After a 3-day week and a refreshing long weekend, the Indian stock market kicked off Monday, April 1, on a high note! 📈 Both the Sensex and the Nifty 50 soared to new all-time highs during intraday trading, defying mixed global cues with a wave of across-the-board buying.
Experts are buzzing with positivity, attributing the market's upward surge to the robust prospects of the Indian economy. 💪 Moreover, anticipation of upcoming rate cuts in the coming months is adding fuel to the bullish sentiment. Investors are seizing the opportunity post-correction, showing confidence in the Indian stock market's potential for the medium to long term. 🚀
📌 Best Time to File ITR from Niyati’s Desk!
Timing is everything, especially when it comes to filing your income tax return (ITR) in India. With deadlines looming and financial implications at stake, choosing the right time to file can make all the difference. Long story short, I think filing as early as you can is the best because this is how it can impact your tax journey:
🐣 Early Bird Advantage: Filing your ITR early offers several advantages. Firstly, it allows you to avoid the last-minute rush, reducing the likelihood of errors and ensuring smoother processing. Moreover, early filers are often among the first to receive any refunds due, providing a timely financial boost. Additionally, early filing gives you ample time to address any discrepancies or additional documentation requirements, if needed.
🧠 Strategic Tax Planning Opportunities: Timing your ITR filing can offer valuable tax planning opportunities. For instance, if you anticipate fluctuations in your income or deductions in the upcoming financial year, filing early allows you to proactively assess your tax liabilities and explore tax-saving avenues. Additionally, early filers can maximize their utilization of tax-saving instruments and investments within the current financial year, optimizing their tax efficiency.
⏰ Extended Deadlines: While the official deadline for filing ITR in India is usually July 31st of the assessment year, it's essential to note that certain categories of taxpayers enjoy extended deadlines. Taxpayers subject to tax audit, have until September 30th to file their returns. Utilizing these extended deadlines can provide extra time for gathering necessary documents if you missed anything out, and maximizing tax-saving opportunities, especially for individuals with complex financial affairs.
⏰ Sayali’s 3 Tax-Saving Measures To Do RIGHT NOW!
As the curtains rise on a new financial year, it's time to roll up your sleeves and get on with planning the upcoming year and redeem yourself, especially if things didn’t go very well for FY 2023-24! These proactive measures can help you optimize your financial outcomes, let’s dive right in:
🗺️ Map Your Tax Trail: Break down your tax-saving journey into manageable chunks – monthly, quarterly, and half-yearly targets. This will keep you on track and will allow for periodic pit stops to assess progress and recalibrate your course as needed.
🧭 Estimate Your Tax Terrain Before stepping into the new financial year, take stock of your tax liability landscape. Estimate your expected income, factoring in potential salary hikes, business earnings, bonuses, and other financial inflows. By gauging the size of your tax liability upfront, you can chart a proactive course, identifying opportunities to invest in tax-saving instruments and maximize your savings.
🔄 Choose Your Tax Regime: Before the financial year begins, decide which tax regime you will be choosing. The new tax regime offers simplicity, with predefined tax slabs and no requirement for tax-saving investments. Conversely, the old regime beckons with opportunities for tax deductions through investments and insurance. Choose wisely, weighing the benefits of each regime against your financial position and your tax liability.
🔖 What Is Wealth To God?
As Indians we are incredibly spiritual people, and we often think that money and spirituality have nothing to do with each other cause money is materialistic and spirituality is beyond that.
On this episode of the Happy Hour with FinCocktail, Sayali discovers a different side to herself as she talks to Om about spirituality, finding a purpose, discovering religion and of course what scriptures talk about when it comes to wealth, watch away!
🍸 Cocktail Pe Charcha
Is it too overwhelming to research & plan your investment? Say no more, we can personally guide you into mixing the perfect financial cocktail to manage your money!
In the grand scheme of financial management, tax planning is a center piece you cannot afford to skip. We just want to conclude this mailer with one little thought: don’t let go of claiming money that is rightfully yours, no matter what!
Let's embrace the certainty of taxes with planning and proactive decisions!✨
Sayali & Niyati❤️