Financial year means in India:-
In India, the financial year runs from 1st April to 31st March of the following year. This period is used as the basis for taxation and other financial purposes in India. It is also known as the fiscal year. During this period, individuals, businesses, and government organizations maintain their financial records and file tax returns accordingly. The government uses the revenue generated during this period to fund its various activities and services. The financial year is an important aspect of financial planning and budgeting for individuals and organizations in India.
(A) Activities need to take care in ‘start of any financial year’ or we must say what is healthy practice to start financial year
Starting a financial year on a healthy note is essential to ensure financial stability and success in the long term. Here are some healthy practices to start the financial year:
1. Review Financial Goals: Start by reviewing your financial goals for the year and ensure that they are specific, measurable, achievable, relevant, and time-bound (SMART).
2. Create a Budget: Create a budget for the year based on your financial goals and ensure that it is realistic and flexible enough to accommodate any unforeseen expenses.
3. Plan for Taxation: Plan your tax liability for the year and take advantage of various tax-saving options available under the Income Tax Act.
4. Review Insurance Coverage: Review your insurance coverage, including health, life, and property insurance, and make any necessary adjustments to ensure adequate protection.
5. Set Savings and Investment Targets: Set savings and investment targets for the year and ensure that they align with your financial goals.
6. Organize Financial Documents: Organize all financial documents and records for easy access and future reference.
7. Seek Professional Advice: Consider seeking professional advice from a financial planner or advisor to help you make informed decisions and achieve your financial goals.
By following these healthy practices at the start of the financial year, individuals and businesses in India can set themselves up for financial success and security in the long term.
While there are several activities that individuals and businesses should take care of at the start of a financial year in India, there are also some activities that they should avoid. Here are some activities that should be ignored at the beginning of the financial year:
1. Unplanned Expenses: Avoid making any unplanned or impulsive expenses that may derail your budget planning for the year.
2. Hasty Investments: Avoid making hasty or uninformed investment decisions. Take the time to research and understand the investment options available before investing.
3. Tax Evasion: Avoid any attempt to evade taxes or engage in any fraudulent activities that may put you in legal trouble.
4. Incomplete Record Keeping: Avoid incomplete or inaccurate record keeping. Maintain accurate records of all financial transactions for future reference.
5. Ignoring Legal Compliance: Avoid ignoring legal compliance requirements, such as filing taxes or obtaining necessary licenses, as this may lead to legal penalties or other consequences.
By avoiding these activities at the start of the financial year, individuals and businesses can stay focused on their financial goals and avoid any unnecessary financial or legal troubles.
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