As the financial year 2023-24 is about to end in a few weeks, it’s essential to know some of the crucial personal finance things you must not miss out on, as they may cause serious financial trouble for you. So, let’s check out some important personal finance things to accomplish before the financial year ends.

Check If You Have Accomplished Your Tax-Saving Goal

Depending on your income earned during the current financial year, you must adjust your tax saving requirement at the end of every financial year. For example, suppose your income during the current financial year exceeds your earlier estimation, and there is more room to make a tax-saving investment, then you must make such an investment before the financial year ends.

Reviewing your tax-saving requirement before the end of the financial year can help you know if you need to invest more or have already made enough tax-saving investments in sync with your income during the relevant financial year.

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Tax Harvesting To Lower The Tax Liability

Long-term capital gains (LTCG) up to Rs 1 Lakh during the financial year on eligible equity instruments are exempt from taxes. LTCG over and above Rs 1 lakh are taxed at a 10 per cent rate. For example, suppose your LTCG from share during the relevant financial year was Rs 1.5 lakh, then when filing the ITR, you have to pay tax on Rs 50,000 at a 10 per cent rate, i.e., Rs 5,000. When you don’t book LTCG every year, it keeps growing, and you have to pay a higher tax at the time of profit booking. For example, your LTCG on share investment during years 1, 2 and 3 was Rs 1 lakh, Rs 2 lakh and Rs 3 lakh, respectively. You booked profit in the 3rd year and had to pay a tax on LTCG of Rs 20,000 (over and above Rs 1 lakh). However, using tax harvesting, you could have saved the tax. In tax harvesting, you must sell the shares before the end of every financial year to the extent of LTCG of Rs 1 lakh and reinvest in the same stock again. This way, the LTCG tax on your equity investment can be lowered significantly in the long term.

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Pay Interest On Education Loan To Claim The Tax Benefit

If you are paying the interest on an education loan for yourself or your children, you can claim the tax deduction benefit on such interest payment. So, if you have an outstanding education loan, make sure you pay the interest before the end of the financial year to claim it as a deduction and lower your tax liability.

The end of the financial year is the time to review your budget, reassess your insurance needs, adjust your tax planning and take steps to ensure you can achieve your financial goals on time.

The author is an independent financial journalist.