Financial Deadline: Complete these 5 work before 31st of December for better financial planning

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 complete before 31 December.

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1. Rebalancing your portfolio

The stock market started declining in early October this year . The decline has been seen reducing in the last few sessions. However, the value of your portfolio would have decreased due to the decline in October and November. 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 share of equity 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 you have not done so, then you have time till March for that. To claim deduction under Income Tax Section 80C and 80D, 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 for 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 your investment from next year i.e. January, then you have to prepare for it from now. You can decide the plan by looking at your financial situation as to how much additional investment you can make from January. If you want, you can increase your investment in mutual fund schemes through SIP from January.

4. Belated return filing

If for some reason you have missed filing income tax return by 31 July, then you can file belated return till 31 December. Income tax return for FY24 can be filed till 31 December with penalty. However, in filing belated return, the taxpayer also has to pay interest on the tax amount. You can take the advice 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 needs. 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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