Last updated: March 21, 2023, 11:47 AM IST
Important financial tasks to be completed before April 1
The tax authorities have announced March 31, 2023 as the deadline to link your PAN card to Aadhaar
We are approaching the end of FY23 and FY24 starts on April 1. Around this time, most of us are busy making new investment plans. March 2023 is important from a personal finance point of view as there are a number of important tasks to complete in the month ranging from PAN-Aadhaar links to tax planning. If you miss these, you will have to pay fines or face other consequences.
Link your PAN to your Aadhaar card
The tax authorities have announced March 31, 2023 as the deadline to link your PAN card to Aadhaar. PAN and Aadhaar can now be linked along with a fine of Rs 1000. Failure to link both ID cards before the deadline will make your PAN useless. The last date to link PAN and Aadhaar without penalty was June 30, 2022.
ITR updated
The last date to submit the updated ITR for FY20 or tax year 2020-21 (AY21) is March 31. The taxpayers must submit the updated ITR if they omitted certain income data or made a mistake when submitting the ITR in FY20. It can also be filed if the ITR has not been filed at all in FY20. However, those with zero or negative returns cannot submit the updated ITR.
Form 12BB
The last date to file Form 12BB is also March 31. A salaried employee must submit this form to the employer to claim tax credits or rebates on their investments. This came into effect on June 1, 2016. Some things that should be on the form are Rent Allowance (HRA), Leave Travel Concessions (LTC) and interest on the home loan.
Tax-saving investment
The investments made before March 31, 2023 will be available to claim deductions under the old income tax regime while filing the ITR for FY23. Under Section 80C of the Income Tax Act, taxpayers in the old tax regime can claim deductions capped at Rs 1.5 lakh. Some investment routes that can be looked at for this are Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), and National Pension Scheme (NPS).
Pay advance tax
Any taxpayer with a tax debt of more than Rs 10,000 must pay tax in advance. It is paid in four installments. 15 percent of the tax due is paid on June 15, the next 30 percent on September 25, another 30 percent on December 15, and the remaining 25 percent on March 15 of the current fiscal year.
If the person has changed jobs or has additional income, they must calculate and prepay the additional tax before March 31. If it is delayed after that, the taxpayer will be charged 1 percent per month interest on the amount owed.
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