Personal finance management should be structured in line with changes in economic situation, taxes and investment pattern. Here are five important points that you should be careful about for an effective result.
Personal finance management is an ongoing process, which also requires caution and accuracy. It should be structured in line with the change in economic situation, taxes and investment pattern etc. There are chances that the strategy you applied in 2017 may not work that efficiently in 2018 due to the changed situation.
However, you don’t need to worry this new year as we list out five important points that you should keep a tab on to manage your personal finance smartly and hassle-free.
Budget 2018 Announcements
Budget is a big event that impacts the personal finance in short as well as long term. The government may come up with a change in tax rates, introduce new Tax Saving Investments, impose some restriction or any other step, which could impact your personal finance positively or negatively. You must watch out for these changes and make necessary adjustments to your personal finance strategy.
Saving And Tax Filing
The financial year (2017-18) will soon come to an end. In order to avoid last-minute rush and mistakes, it is best to take steps to save taxes efficiently. Assess your expected tax liability and explore ways to cut the tax obligation using various legal ways. You must adhere to your financial goal when you invest to save the tax amount. It would also be wise to keep your tax saving plan ready before stepping into the next financial year.
ITR Filing – Be Punctual To Avoid Penalty
The tax filing for Assessment Year (AY) 2018-19 will be different. In AY 2017-18, there was no provision for a penalty if ITR filing was delayed, but in AY 2018-19, you could be penalised up to Rs. 10,000 for delayed ITR filing. However, individuals whose income is less than Rs. 5 lakh, the penalty amount would be Rs. 1,000 only. It is best to be ready with all the documents that are essential for filing the ITR.
Aadhaar Linking Deadline
The deadline to link Aadhaar with many financial services has been extended to March 31, 2018, by the government. Services like Mutual Fund investment, demat account, bank Savings Account, SIM card, PAN card, Insurance schemes, PPF etc. are required to be linked to the Aadhaar. If you fail to link these listed mandatory services, then you won’t be able to operate it after the deadline ends. You may not be able to use your phone, or withdraw or deposit money in your bank account.
General Elections 2019
This year the government would be presenting its last budget before the 2019 general elections. The equity market may not remain stable around the last few months of 2018 owing to predictions and assumptions. You should be ready with a plan to keep your invested fund secured from the expected volatility by exploring alternative investment plans.
2018 could be just another year for many people, but for a smart investor, it is another chance to accomplish all their financial goals. Strict financial discipline should be followed every year for a healthy financial life.