How can I plan for future tax liability?

Here are a few tips to plan for future tax liability in India:

1. Invest in taxsaving instruments: Investing in taxsaving instruments such as Public Provident Fund (PPF), National Savings Certificate (NSC), taxsaving mutual funds, and Unit Linked Insurance Plans (ULIPs) can help reduce your tax liability while also providing longterm financial benefits.

2. Opt for longterm investments: Longterm investments such as equity investments, property, and mutual funds can help you save on taxes in the long run. Shortterm capital gains are taxed at a higher rate compared to longterm capital gains.

3. Consider tax implications before making investments: Before making any investment, it's important to understand the tax implications associated with it. For example, some investments may offer tax benefits at the time of investment but may be taxed heavily at the time of withdrawal.

4. Utilize taxsaving allowances and exemptions: The Indian government offers various taxsaving allowances and exemptions such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), and medical reimbursements. Make sure to utilize these exemptions to reduce your tax liability.

5. Keep track of your tax liability: It's important to keep track of your tax liability throughout the year to avoid any lastminute surprises. This can be done by maintaining proper records of your income and expenses and consulting a tax professional for advice.