How to Do Your Financial & Income Planning in India (FY 2025–26)

Financial planning is the process of managing your income, expenses, investments, and taxes to achieve financial goals efficiently.

Key objectives:

• Maximize savings and returns

• Reduce tax liabilities legally

• Plan for short-term and long-term goals

• Build wealth and retirement corpus

• Protect against financial risks

WonderTax helps individuals and businesses create a roadmap for tax-efficient financial growth.

Internal Link Example: Explore Wealth Planning Services India.

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📝 Steps for Effective Financial & Income Planning

1. Assess Current Income & Expenses

   • Track monthly salary, business income, and other income sources

   • Categorize expenses: essentials, discretionary, investments

2. Set Financial Goals

   • Short-term: emergency fund, travel, gadgets

   • Medium-term: house purchase, car, children’s education

   • Long-term: retirement, wealth accumulation

3. Optimize Tax Planning

   • Choose old vs new tax regime (FY 2025–26)

   • Claim deductions under 80C, 80D, 80G, 80E, etc.

   • Invest in tax-saving instruments like PPF, ELSS, NPS

4. Investment Planning & Diversification

   • Equity: stocks, ETFs, mutual funds

   • Debt: FD, bonds, debt mutual funds

   • Real Estate & Gold

5. Emergency Fund & Insurance

   • Maintain 6–12 months of expenses

   • Life & health insurance coverage

6. Monitor & Review Regularly

   • Reassess yearly or on major life changes

   • Adjust investments, risk appetite, and goals

Internal Link: Learn more at Investment Planning & Tax Saving India.

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💰 Example – Income Planning for a Salaried Individual

Mr. Sharma, 35 yrs

• Gross Salary: ₹12,00,000/yr

• Tax-saving Investments (80C): ₹1,50,000 PPF + ₹50,000 ELSS

• Health Insurance (80D): ₹25,000

Steps Taken:

1. Maximize deductions to reduce taxable income

2. Invest in diversified mutual funds for growth

3. Maintain emergency fund covering 6 months expenses

4. Plan yearly review to adjust for bonuses or salary hike

Result: Reduced taxable income from ₹12 L → ₹10 L, optimized tax liability, and ensured liquidity for emergencies.

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📈 Benefits of Proper Financial Planning

1. Tax Efficiency: Lower tax outgo legally

2. Goal Achievement: Structured approach to short, medium, and long-term goals

3. Financial Security: Emergency funds and insurance coverage

4. Wealth Growth: Optimal investments based on risk profile

5. Peace of Mind: Avoid financial stress and last-minute decisions

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❓ FAQs – Financial & Income Planning

Q1: Can financial planning help reduce taxes?
Yes. Through proper investment, deductions, and regime choice, you can minimize tax liability.

Q2: How often should I review my financial plan?
At least once a year, or on major life events (marriage, children, job change).

Q3: Is it better to invest in equity or debt?
Depends on risk profile and financial goals. WonderTax provides personalized guidance.

Q4: Can NRI investors also plan taxes in India?
Yes. NRIs must consider Indian income, TDS, and double taxation treaties while planning.

Q5: Are retirement plans included in financial planning?
Absolutely. Retirement corpus planning is a critical part of long-term financial strategy.

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