AS the financial year (FY) 2011-12 (April 1, 2011 to March 31, 2012) is nearing an end, it would be best to plan your personal finances to avoid any last minute rush. Some tips for doing this are given below

■ Plan your investments: One must plan investments and spread it across various instruments specified under Chapter VIA, such as Section 80C and Section 80CCF, of the Income Tax Act, 1961 (the Act) so as to avail maximum tax benefit.

The popular options available under Section 80C (maximum deduction available up to Rs 1,00,000 per year) are investments in public provident fund (the limit of which has recently been enhanced to Rs 1,00,000), national savings certificate, life insurance premium and fixed deposits in banks, among others.

It is pertinent to note that not only investment in specified avenues helps in reducing taxes, but specific expenditures, such as repayment of principal on housing loans and tuition fees paid for children, would also qualify for deduction under Section 80C.

Submit investment proofs to employers in time: In case you are a salaried individual, then you should submit the proof of investments/expenses to your employer within the time specified by the employer, so that he takes the relevant available deductions into consideration and compute the taxes on the balance income.

In case you are repaying a home loan, you must collect the certificate of repayment of principal amount and the interest paid during the financial year from the concerned bank/financial institution. You are required to submit the proof of the same to your employer so that the relevant deductions are allowed and taxes are computed accordingly.

If you are claiming deduction under Section 80D for payment of health insurance premium for self and family, then ensure that you submit the receipt to your employer, to avail the allowable deduction of up to Rs 15,000 (additional deduction of Rs 20,000 would be done in case of dependent parents, who are senior citizens).

■ Documentation of all your investment proofs and receipts: Although, there is no longer a requirement to file any supporting document, such as investment proofs along with the return of income, it is advisable to maintain the relevant documentation for the same and keep them in records for future reference. These would also be required, in case your return is picked up for assessment.

■ Maintaining record of the income earned during the year: One should keep a record of their income earned from various sources like bank interest or rental income because they are taxable. Also, if you have sold/transferred any assets, such as house property, shares and mutual funds, then you are required to pay tax on the same, after taking in account the necessary deductions and exemptions available.

■ Payment of advance tax: In case you have any income on which tax has not been deducted at source, then you are required to pay advance tax on such estimated income as per the prescribed timelines.

Advance tax is payable only if the total tax liability after reducing the tax deducted at source is more than Rs 10,000.

It is always advisable to pay advance tax before the due date in order to avoid interest liability, which is payable before filing a tax return.

The next due date for payment of advance tax is March 15, 2012.

These small, yet important, resolutions can go a long way in avoiding the last minute rush of trying to minimise your tax liability and ensuring that all the available exemptions/deductions are claimed in a timely manner.