Monthly Tax Planning Strategy
April – Get Started Right
Choose your tax regime: Old vs. New (check your Form 16 options).
Estimate annual salary, bonuses, and variable pay.
Submit investment declaration to your employer to reduce TDS.
Start SIPs in ELSS, PPF, NPS, or tax-saving FDs.
May–June – Focus on Budgeting & Deductions
Track expenses eligible under Section 80C (e.g., life insurance premiums, tuition fees).
Plan for Section 80D: Buy or renew health insurance for self and family.
Begin setting aside funds for HRA/rent receipts and home loan interest.
July–August – Mid-Year Review
Review Form 26AS/AIS to track reported income and TDS.
If excess TDS is being deducted, adjust your declaration.
Invest in NPS Tier I for extra ₹50,000 deduction under Section 80CCD(1B).
September–October – Adjust and Optimise
Evaluate performance of tax-saving investments (ELSS, PPF).
Consider pre-paying home loan principal for tax advantage.
Claim deductions for education loans, donations (80E, 80G) if applicable.
November–December – Keep Proofs Ready
Gather rent receipts, premium payment receipts, investment proofs.
Ensure employer has your updated proof submission list.
If not salaried, keep digital copies for self-filing later.
January–February – Catch-Up Window
Invest remaining amount under Section 80C if you're short of ₹1.5 lakh.
Pay advance tax if applicable (for freelancers with dual income).
Submit investment proofs to HR before the company deadline.
March – Final Check & Rebalance
Double-check all deductions and exemptions claimed.
Keep final copies of Form 16 (when available) and 26AS.
Ensure all investments are made by March 31st to qualify for current FY.
Key Tax Deductions to Remember
Section Deduction Type Max Limit
80C PPF, ELSS, LIC, EPF, Principal on Home Loan- ₹1.5 lakh
80D Health Insurance Premiums ₹25,000 – ₹1 lakh
80CCD(1B) NPS (additional) -₹50,000
24(b) Home Loan Interest (self-occupied)- ₹2 lakh
10(13A) HRA (rent paid) Based on salary
Benefits of Monthly Tax Planning
✅ Avoids March investment panic
✅ Reduces monthly tax burden
✅ Helps in financial discipline
✅ Gives better returns by investing early
✅ Ensures compliance and proper documentation
Conclusion
Smart tax planning isn’t about finding shortcuts—it’s about consistent action throughout the year. Salaried employees can save thousands in taxes just by staying organised. Start now, stay on track, and file your return without surprises.
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