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Few Important things to be done before 31st March
Written by Gagandeep Arora - Printed on - Date - 19th March 2022
As we have entered the month of March the countdown to the end of this Financial Year 2021-22 has begun. 31st March is the end date or day of any financial year. Any Income taxpayer will understand the importance of this statement.
The period of Financial Year starts from 1st of April till 31st March of next Calendar Year. This is the period in which income earned is assessed for tax purpose. The income tax is assessed on the income earned during the FY is paid on during the year or before the due date of Filing Tax Returns which is 31st July of next FY. This next year in which the income is assessed to tax is called as the Assessment Year.
Whereas Calendar Year is a one-year period that begins on January 1 and ends on December 31, based on the commonly used Gregorian calendar.
Isn’t it appropriate to say here that the month of the tax begins with April Fool’s Day and ends with the cries of May Day? Before the completion of the financial year, an assessee should complete a few important things let us study them in detail.
Few important things need to be completed before 31st March
Financial year is coming to an end and there are few major tasks one should keep in mind and do before or on 31st March – the Financial Year End.
1. Link Aadhar Card with PAN Card (if not done)
An assessee should necessarily link the Aadhar card with the pan card before 31st March 2022. Suppose you have missed doing this ensure that you do it before the time limit ends. Failure to do so will lead to the inactivation of PAN cards and a penalty of Rs. 10,000 also. It is a simple process and can be done online by logging on to the income tax website.
2. Re KYC to be done
It is better to update KYC with the bank too, to avoid any disruptions in their accounts, account holders need to update the KYC. The deadline to complete the KYC has been extended to 31st March 2022.
3. File Pending Income Tax Returns
If the due date has been missed for filing your income tax return then there is still time to file the return. That is known as a belated tax return which can be filed by 31st March 2022 for this financial year. This can be filed along with late filing fees which are charged if your income was more than Rs. 5,00,000 is 10,000 but due to the striking of Pandemic for this financial year, it is Rs.5,000.
4. Submit Investment Proofs To Your Employer (for salaried employees)
For a salaried employee, you need to submit investments proofs to their employers for the financial year which if delayed can occur in excess TDS being deducted from your income. Although a claim can be made to refund the excess TDS deducted at the time of filing of income tax returns. Besides, that HRA exemption, LTA exemption, and medical reimbursements proofs are also to be given.
5. Pay Advance Tax
Advance Tax as the name suggests is the tax paid much before the financial year ends. Famously, known as ‘ Pay as you earn’ tax also. In other words, an amount is paid to the Income Tax department according to the due dates given by them in the same year the income is received. For the salaried employee, the employer deducts TDS and therefore is not required to deposit Advance Tax. But all other categories are required to self assess their tax liability on their estimated income and deposit the same with the government.
6. Minimum Contribution To PPF Accounts And NPS Account
If an individual has a PPF account either in your name or in the name of your child or spouse, you have to contribute a minimum of Rs.500 every year in each account to avoid the account becoming dormant. In case you have an NPS account, you need to deposit a minimum of Rs.500 every year in your account.
7. Invest To Save Tax
Investing in various sources under Sec 80C with a maximum limit of Rs 1,50, 000 assessee can save tax upto Rs 46,800. Provided the assessee do all the investments before 31st March – year end close then only he can claim the tax benefit. This also raises another question – should investments be done to save taxes or the investments should be done based on your future goals. Do right kind of investments for right kind of returns at right time – still you would save tax. There are many schemes available like the Public Provident Fund, National Pension Scheme, Sukanya Samriddhi Yojana from which benefits are available under Section 80 C.
Conclusion-Plan ahead
As the financial year comes to an end or let's say as we approach 31st March, our panic and confusion will increase furthermore if we do not plan well and complete the basic requirements well in advance which is needed to be done.
You can still e-File your Tax Returns - Click here for CA Assistance
