Not too late to plan your taxes

If you haven't done your year's tax planning yet, there's still time to take advantage of the deductions the government offers. There could be reimbursements you might not have claimed. Rather than wait until March, you can present the bills now and use the reimbursement money to do tax planning. Similarly, if you have idle money in a savings bank account that's inactive, close it and use the funds for planning tax.

"Don't let go the opportunity to save tax only because you are late. If a person in the highest tax bracket manages to get Rs 1 lakh deduction and thereby saves Rs 30,000 in tax, that's like getting 30 per cent instant returns on an investment of Rs 1 lakh," says Amar Pandit, chief executive (CEO), My Financial Advisor. He says an individual can even use an idle fixed deposit to plan tax, if there's no liquidity issue and no near-term financial commitment. (PRODUCTS THAT HELP SAVE TAX)

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