As we enter the last month of the existing 2021-22 fiscal year. Ideally, your tax planning should start from the first month of the fiscal year in April. You must do whatever it takes to save tax for the year ending March. So March is going to be very important for tax planning. Besides these, from the last day of filing late income tax returns to linking your PAN-Aadhaar, the month of March also has some other crucial deadlines for your money matters. Here are some key deadlines that are likely to affect your finances this month.
Last month for tax planning
It is the last chance for taxpayers to maximize the tax benefits under different sections. Despite being aware of this deadline, most investors put off their income tax planning until the last minute. If you haven’t planned your tax-saving investments until now, do so at the earliest and avoid common investing mistakes.
Deadline for filing late returns
The deadline for filing the income tax return (ITR) for fiscal year (FY) 2020-21 or tax year (AY) 2021-21 ended on December 31, 2021. But you can still file late until March 31, 2022. However, if you are too If you want to file a late return, you may have to pay a penalty and additional tax interest. In addition, there are a few limitations of a late return. Read More
A late return is a return that is filed after the due date stated in the income tax scheme. A late income tax return will attract a late filing fee under Section 234F of the Income Tax (IT) Act of Rs 1,000 in the event that the gross total taxable income during the financial year does not exceed Rs 5 lakh; or Rs 5,000 else.
PAN-Aadhar coupling
The last date to link your Permanent Account Number (PAN) to their Aadhaar Card is before March 31, 2022. Failure to do so within the stipulated deadline may cause the PAN card to become invalid and a fee of Rs 1,000 may be required for it pairing the PAN card with Aadhaar after that. If the PAN card is not linked to Aadhaar, a person cannot invest in, among other things, mutual funds, shares or open a bank account, as providing a PAN card is a must in all those cases.
You can link them through the e-filing website, by texting 567678 or 56161 and typing UIDPAN or offline through National Securities Depository Limited (NSDL) and UTIITSL PAN service centers.
KYC update in your bank accounts
Customers must complete updating KYC by March 31, 2022. The Reserve Bank of India (RBI) had extended the deadline for KYC on bank accounts to March 31, 2022, from the previous deadline of December 31, 2021, due to the surge of the Omnicron variant of the coronavirus in the country.
Customers must visit their bank branch along with a set of self-confirmed documents, including ID and proof of address. The RBI has now authorized the use of digital channels for periodic update of customer KYC data. This includes video KYC and the submission of electronic documents via digi-locker to the financial institutions for verification purposes.
Some of the leading banks such as the State Bank of India (SBI) also allow clients to submit their documents to update their KYC details, either via email or post. If the customer misses the latest KYC update date, the bank would freeze the account.
Advance tax payment
The deadline for submitting input tax is approaching. Any person whose estimated tax liability for the year is Rs 10,000 or more is required to pay tax in advance. The withholding tax must be paid in four installments during the financial year itself. The last date for payment of the fourth installment of input tax is March 15, 2022.
This applies to all taxpayers, wage earners, self-employed persons and companies. However, a resident senior (an individual aged 60 or over) who has no business or professional income is not subject to input tax. A salaried worker, who has no income other than salary, is not required to pay tax advances, as employers are required to withhold the applicable tax from the monthly salary and pay it to the department. Failure to pay the correct withholding tax on time or paying too little tax leads to penalty interest.
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