April is the month when most salaried individuals have to submit their proposed investment declarations – indicating the tax-saver investments they plan to make during the financial year – to their employers.
Beginning of a financial year is also the right time to evaluate and make changes to your financial plan. Your tax planning ought to be a subset of this process and not an exercise to completed in a hurry in March.
This year, the process has assumed greater significance due to a key announcement made in Budget 2023. Starting this year, the new, minimal exemptions tax regime will be the default regime. So, unless you state your intent to stick to the old tax regime, your employer will compute your tax liability after factoring in the new tax regime’s tax slabs and rates.