CHECKLIST OF TASK YOU HAVE TO COMPLETE BEFORE THE END OF FINANCIAL YEAR
March 31st is the last working day of a financial year. There are a number of tax-related tasks that need to be finished before this important deadline. Here is a checklist for you to see if you have missed something.
1.Filing of Pending Returns:
31st March, 2021 is the last date for filing Income tax returns for AY 2020-21. One must file the belated income tax return for AY 2020-21 by the end of 31st March, 2021.
2. Linkage of Aadhaar with PAN:
It must be noted that the return of income tax payer will not be processed if Aadhaar is not linked to PAN by 31st March, 2021, moreover, penalty will be imposed. Earlier the deadline for linking PAN with Aadhaar was June 30, 2020.
3. Calculation of GST Turnover:
The total turnover in your Current year up to 31st March is to be calculated for the purpose of determining the aspects like applicability of GST Registration, Eligibility of opting Composition Scheme, and Applicability of Filing of specific returns.
4. Tax saving investments:
You will be claiming deductions and exemptions under various sections while filing your income tax return for the financial year. For this, you would need to make the investments before March 31st. You need to check how much more you need to invest under Section 80C after accounting for your employees’ provident fund (EPF), tuition fees paid for self and child education, life insurance premium paid etc.
There are certain other sections such as 80D under which you get a get deduction against the health insurance premium paid up to Rs 25,000. So, if you are planning to buy one, you need to do it before March 31st. You can also claim an extra deduction of Rs 50,000 over and above section 80C by investing in the national pension scheme (NPS). But you need to do it before March 31st to claim the deduction.
5. Compulsory investment under PPF
The minimum compulsory annual contribution to PPF account is Rs. 500. So if you have PPF Account then you need to contribute at least Rs. 500 per financial year. The last date of this contribution is 31st March, 2021..
6. Claim reimbursements
in case of salaried employees Salaried individuals are entitled to certain reimbursements on the basis of their salary structure such as medical reimbursements, Telephone, leave travel, house rent allowance etc. To claim such tax exemption, such persons nee8.
7. Submit Form 12B
Form 12b is an income tax form that needs to be furnished according to Rule 26A by an individual joining a new organisation or company in the middle of the year. The main purpose of the form is to furnish details of the income earned by the individual from the previous employer. Every new employee has to submit Form 12b to their new employer. Furnishing Form 12b is not compulsory.
8. Advance Tax
Under the Income Tax Law of India, a person except for senior citizens without any professional income with a tax liability of over Rs 10,000 is liable to pay advance tax in four instalments before July 15, September 15, December 15 and March 15. However, if the tax is not paid on or before the deadline, the taxpayer is charged 1 percent interest per month for deferment in instalment and 1 percent interest per month if only 90 percent of the total amount is paid before the end of the FY.
9. Avail Benefit of Vivad se Vishwas Scheme
In order to provide further relief to the taxpayers desirous of settling disputes under Vivad se Vishwas Scheme, the Government has further extended the date for making payment without additional amount from December 31, 2020 to March 31, 2021
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