3 reasons why you should plan your tax saving investments in time

A majority of salaried tax payers in India plan their tax saving investments at the last moment when the deadline for submission of investment proofs arises or when the financial year draws to a close. While a last ditch effort may help you in saving tax, as is the case with any action completed in a hurry, it may not be the best option that you have chosen.

Here are 3 reasons why planning ahead helps you:

  1. Plan for the best option: You can use the time to choose an investment option that will suit you best given your risk appetite, your liquidity needs, your investment horizon and accordingly arrive at an ideal option. If you wait till the deadline approaches, you will generally be rushing into your purchase, and will probably settle for the option that involves the least paperwork and the least time or the one which the salesperson pitches.
  2. Avoid last minute hassles and errors: When you are hard pressed for time, you rush into your investments and press for completion. Such haste in most cases leads to errors in processing – you may find that your name has been misspelt or there is an error in your application and the path to completion gets further delayed. Also, in your hurry to complete your investment you may not do the required due diligence before buying the product
  3. Spread your investment payments over the year: Starting early means that you have the flexibility for scheduling payments through the year. If you plan to invest in ELSS for saving tax, instead of a lump sum payment you can opt for Systematic Investment Plans that will enable a smaller outgo each month. Similarly, if you opt for an insurance plan, you can choose to structure your premium payments over a monthly or quarterly basis. When you push your investments to the last minute, you do not get the flexibility of staggering a big amount over a longer period. This approach also allows you to benefit from Rupee cost averaging concept.


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Tax Benefits will be as per applicable tax laws. The user/investor needs to verify all the facts and circumstances with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. Tax laws are subject to amendments from time to time.
Standard Chartered Bank, India is a distributor or referrer of the relevant third party investment products. In its capacity of a distributor or referrer of relevant third party investment product, Standard Chartered Bank, India may offer advice which is incidental to its activity of distribution/referral. Nothing in this document should be construed as ‘Investment Advice’ as defined under the Securities and Exchange Board of India (Investment Advisors) Regulations, 2013 or otherwise.
Mutual Funds investments are subject to market risks. Please read all Scheme Information Documents carefully before investing. Investors in the scheme(s) are not offered a guaranteed or assured rate of return and there can be no assurance that the scheme(s) objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the scheme(s).
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