March 31 -- the all-important date in a financial year for tax payers -- has just passed by. You are now relaxed, having made your taxrelated investments. It has been a hectic month, thanks to the endless search for the right avenue and frantic calls to your tax consultant. You are glad that it's over and you won't be required to undertake the onerous task until March 2009.

And this is the very tendency you need to guard yourself against. Treating tax planning as a year-end exercise is a mistake that most people commit year after year, despite cartloads of advice calling for proper planning and systematic investments through the year. Thorough planning can yield rich dividends. As Franklin Templeton's senior portfolio manager, equity, Sivasubramanian KN says: "Investment success comes about through rigorous financial planning and then exercising discipline while implementing the investment strategy. When planning for taxes, retirement and children's education, one needs to have a carefully-developed plan in place, taking into consideration the objective, risk tolerance and time horizon." And devising a meticulous plan necessitates investing adequate time and efforts.

Instead of putting off the exercise until March next year, you could start utilising the time that you have on hand right now to identify the right opportunities. Apart from ensuring better decisions, it would do away with the stress involved in zeroing in on suitable tax-saving instruments at the last minute and help you steer clear of the pitfalls.

Why start early?
One of the most common mistakes that result from rushed decision-making is taking a life insurance cover in most cases Ulips (unit-linked insurance policies) that is not commensurate with the individual's requirements. People go in for insurance to avail of the tax breaks on premiums paid under section 80 C, without realising that they may not need an expensive cover and also that they would have to incur the cost at least for three subsequent years. "People fall prey to sales agents' tactics, who feed on their fear that time is running out. As a result, they direct their funds into instruments that might not help their cause," explains Kartik Varma of iTrust.in, a financial advisory firm. Lack of proper planning could result in non-availability of your own money when you need it the most.

* Systematic Investment is key