Introduction
Half the financial year is already over. Before the year rushes past, September is a smart checkpoint to evaluate your financial position, review tax-saving opportunities, and make informed investment decisions. Most taxpayers focus on tax-saving only in February–March. But mid-year planning can save tax, reduce stress, and improve returns.
Let’s explore why now is the perfect time to pause and plan.
📊 1. Assess Your Tax Saving Progress
Have you utilised Section 80C, 80D, and other eligible deductions fully?
- ✅ Review life insurance premiums, ELSS investments, EPF, PPF, home loan principal, and tuition fees.
- ✅ Consider topping up your health insurance for 80D benefits.
- ✅ Don’t wait till March when investment choices become rushed and less strategic.
💰 2. Plan Advance Tax Before 15th September
- If you have business income, rental income, capital gains, or interest income—advance tax applies.
- Second instalment is due by 15th September (45%).
- Failing to pay can attract interest under Sections 234B and 234C.
📈 3. Capital Gains Review & Tax Harvesting
- Check if you’ve booked any capital gains (long/short term) already.
- Plan loss harvesting or gain realisation if needed to optimise taxes.
- Rebalance equity vs debt based on current market performance.
🔍 4. AIS, TIS & Form 26AS Review
- Download and verify Annual Information Statement (AIS) and Form 26AS.
- Mismatches? Rectify now before the end of the year to avoid scrutiny or notices.
- Ensure all TDS entries are correctly reflecting.
🧮 5. Optimise HRA and Salary Structure
- If you’re claiming House Rent Allowance, make sure your rent receipts are maintained.
- Update rent agreements if changed.
- Evaluate salary restructuring options with your employer for tax efficiency.
📅 6. Align Financial Goals With Investment
- Is your SIP or mutual fund investment aligned to your long-term goals?
- Evaluate switching from low-return FDs to tax-efficient mutual funds.
- Reassess risk appetite if major life changes have occurred.
📌 Conclusion
Mid-year financial planning is not just about saving tax—it’s about making smart, informed financial decisions. You still have six months left to optimise and plan, but September is your ideal checkpoint to course-correct and save more.
💼 Need Help?
🔶 Reach out to MALAV C. SHETH & CO., Chartered Accountants
📩 Email: malav@camalavsheth.com
🌐 Website: www.camalavsheth.com
