Starting December , the salaried class suddenly wakes up to the reality of taxes and realises investment need to be made to save tax. Looking for funds and making a hasty decision while investing is almost a second habit of most of the salaried class. Many tax saving products are bought without looking at options or weighing at the advantages of each of the option.
Mushrooming tax planning stalls at offices and malls try to sell whatever products they have and lot of people buy "investment plans" in a hurry without even understanding where their money goes. For example , a friend of mine invested in a Equity linked ULIP for saving tax . This friend is wary of equity but didn't realise where his money was being invested after charging 30% commission on his initial premium.
So options like NSC, PPF, FDs, ELSS , etc need to be considered at the beginning of the year. One should start investing regularly to save tax from April, May time frame. This helps in
1) Making wise decisions as you are in no hurry to submit proofs to your employer at the beginning of the year.
2) Makes investment a planned activity and helps avoid with huge burdening of investing at the year end.
3) Your money starts working for you a couple of months earlier as you start investing in the early part of the year.
If you have not taken any new year resolution, you can resolve to make planned investments for saving taxes from the next financial year...if you have not been doing this till now.