9 tasks do at the beginning of the new financial year

    Review your goals
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    Review your goals

    Review your financial goals and investments in the beginning of the FY. Your investments could have underperformed or the target prices may have moved up. For instance, if you were planning to buy a house, prices may have gone up. So, it is time to review if your investments are in-line with your goals. If there's a gap, invest more to cover it up.

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    Rebalance the portfolio
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    Rebalance the portfolio

    The equity markets are close to all-time highs. This means the asset allocation of your portfolio would have changed. Equities rose 18.5%, debt grew 9% while gold gave negative returns in 2016-17. To reset the portfolio to your desired allocation, sell some equity investments and invest the proceeds in debt and gold. It has been proved that investors who periodically rebalance their portfolios get better returns than those who don't.

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    Increase SIP amounts
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    Increase SIP amounts

    It is time for annual increments. Do not let the lifestyle inflation eat away at your salary hike. As the take home pay increases, very few people manage to control their purse strings when they have money to spend. But when your income rises, your investments should also rise. If you have SIPs running, it is time to increase the investment amount by 10-15% so that your overall savings rate does not decline.

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    Invest in ELSS funds
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    Invest in ELSS funds

    To avoid last minute tax planning, start your ELSS SIP in April. ELSS investments qualify for deductions up to INR 1.5 lakhs under Section 80C. The SIP route is easy on the pocket and yields better returns too.

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    Open an NPS account
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    Open an NPS account

    The National Pension System (NPS) is more attractive now. Two years ago, the government introduced an additional deduction of Rs 50,000 for investments in NPS under Sec 80CCD (1B). Last year, it made 40% of the corpus tax free. The PFRDA has made it very easy to open an NPS account online for Aadhaar card holders. It is now a simple 15-20 minute affair.

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    Submit Form 15G, 15H
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    Submit Form 15G, 15H

    If you or a senior citizen investor in the family are not in the taxable bracket, submit Form 15G or 15H to avoid TDS on investments. However, before filling out these forms, make sure that the individual meets the eligibility criterion. An incorrect declaration amounts to tax evasion and can invite stiff penalties from the tax department.

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    Hike PF deduction
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    Hike PF deduction

    Interest rates on small savings have been cut. The PPF will now give only 7.9%. But you can earn more if you opt for the Voluntary Provident Fund (VPF). At 8.65%, it offers higher rate than small savings schemes. The returns are tax-free and there are no restrictions on deposits. Ask your employer to deduct a higher amount for VPF. In most firms, this can be done only at the beginning of the financial year or in October.

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    Get ready to file ITR
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    Get ready to file ITR

    It's time to get ready to file your tax returns. The tax deducted by your employer will reflect in Form 16. Check your Form 26AS online to make sure that all other taxes (advance tax, TDS on investments and other direct taxes) have been credited to your PAN. You can use your Netbanking account to check Form 26AS. In case of a discrepancy, notify the deductor immediately and get it rectified before the tax filing season starts.

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    Review mobile, DTH plans
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    Review mobile, DTH plans

    The ongoing war between telecom companies presents an opportunity for you to cut down your tariff. Many players are offering unlimited calls and data for a nominal monthly fee. If you're paying too much, consider switching operators using the mobile number portability facility. Or find out about cheaper plans your current operator offers. Opt for a yearly DTH subscription rather than monthly and save money.

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