Many people increase their investment every year. This is very important in terms of creating a big fund in the long term. If you have also planned to increase the investment from next year i.e. January, then you have to prepare for it from now.
There are about three weeks left for the year 2024 to end. This is the right time to review your financial plan, tax planning and investment portfolio. Many people do not get time to pay attention to these things due to their busy work. Such people should take out some time for these tasks at the end of the year. Moneycontrol is telling you about some such important tasks, which would be good to get done before 31 December.
1. Rebalancing of the portfolio
The stock market started declining in early October this year. The decline has been reduced in the last few sessions. But, due to the decline in October and November, the value of your portfolio would have decreased. The balance of equity and debt would have changed. This is the right time to take a close look at the portfolio once. If the equity share in your portfolio has decreased, then you can use the opportunity of market decline to invest in equity. This will balance your portfolio again.
2. Tax Planning
If you use the old income tax regime, then you should check once whether you have made the necessary investment to claim tax deduction. If not, then you have time till March for that. To claim deduction under sections 80C and 80D of Income Tax, you have to invest before March 31. By checking now, you will know how much more investment you have to make for tax savings. If your health insurance is going to be renewed in January or February, then you have to plan its premium payment from now. If this is not done, renewal may be missed.
3. Investment plan for 2025
Many people increase their investment every year. This is very important to create a big fund in the long term. If you have also planned to increase investment from next year i.e. January, then you have to prepare for it from now. Looking at your financial situation, you can decide this plan that how much additional investment you can make from January. If you want, you can increase investment in mutual fund scheme through SIP from January.
4. Belated return filing
If for some reason you have missed filing income tax return by 31st July, then you can file belated return till 31st December. Income tax return of FY24 can be filed by 31st December with penalty. However, in filing belated return, the taxpayer also has to pay interest on the tax amount. You can take the opinion of your tax expert in this regard.
5. Insurance planning
If you have not taken term insurance or you have a policy with low cover, then this is the right time to review it. The cover of your life insurance policy should be sufficient for your need. The cover of your health policy should also be sufficient. By reviewing it at the end of the year, you can plan to increase the cover in the new year.
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