TOP 5 Things to do at the beginning of Financial Year 2022-23

Satyendra Bhardwaj

As the new Financial Year 2022–23 (Samvat 2079) begins, you should focus on early tax planning instead of rushing investments at the last minute. Many individuals end up making poor financial decisions—or even taking personal loans—just to save tax at the end of the year.

To avoid such situations, follow these 5 smart financial year tax planning strategies in India and stay ahead of your finances.

1. Know Your Income Clearly

Start your financial year tax planning in India by calculating your expected annual income.

• If you earn a fixed salary, use your increment letter to estimate yearly income
• Include additional income sources like equity investments or side businesses
• Write down your gross annual income for better clarity

Knowing your income helps you plan taxes, savings, and investments efficiently.

2. Calculate the Investment Gap

Next, identify the gap between:

• The amount required to maximize tax-saving benefits
• Your monthly disposable income

This step is crucial to align your tax-saving investments with your financial goals. Adjust your expenses early in the year to avoid pressure later.

3. Invest First, Spend Later

Adopt a disciplined approach: invest before you spend.

• Set aside a fixed portion of your income for investments
• Start with at least 10% of your monthly salary in your 20s
• Increase your investment amount annually with salary growth

This habit builds long-term wealth and ensures consistent tax savings.

4. Review Your Investment Portfolio

Evaluate your current investments regularly:

• Check performance of mutual funds, equities, and debt instruments
• Identify underperforming assets
• Consult financial advisors if needed

A timely portfolio review ensures your investments stay aligned with your financial year tax planning goals in India.

5. Secure Yourself with Insurance

Insurance plays a critical role in financial planning.

• Invest in health insurance and hospicash policies
• Protect your savings from unexpected medical expenses
• Ensure your investment plans remain unaffected during emergencies

Even young professionals in their 20s and 30s should prioritize insurance, as medical emergencies can occur at any time.

Conclusion

Effective financial year tax planning in India requires discipline, early action, and smart decision-making. By understanding your income, investing strategically, reviewing your portfolio, and securing insurance, you can avoid last-minute stress and build long-term financial stability.