As we all know that 31st March - year end is just around the corner and 31st March is an important date by which important financial obligations should be fulfilled. Hence, there are some really important do's that are to be completed before the arrival of 31st march like tax related tasks as there are deadlines which are required to be met.
Just a week is left for this fiscal year to close and below are the highlighted things that should be taken care of-
1. Filing of Pending Returns
31st March of every year is most famous because of Last Date of Filing Income Tax Returns. As far as is this year is concerned, 31st March 2021 is the due date of filing income tax returns for AY 2020-21. One can file their income tax returns through incometaxindiaefiling.gov.in.
Income Tax Department is also reminding those who have not filed their revised or belated return for Financial Year 2019-20 to file it up to 31st March.
The previous deadline of linking Aadhar with PAN was 30th June 2020. Central Board of Direct Taxes (CBDT) by notification on 24th June 2020 extended this deadline to March 2021.It is important to know that ITR will not be processed if Aadhaar and Pan are not inter-linked.
3. Availing benefit of Investment
For claiming deductions in the Income tax return, we need to make investments before 31st March.
Individuals and HUFs are entitled for deduction u/s 80C of the Income Tax Act for a deduction up to an amount of investments of Rs. 1,50,000/- and an additional deduction of Rs. 50,000/- u/s 80 CCD for investments in National Pension Scheme (NPS) subject to certain conditions.
Further deductions like premium for health insurance u/s 80D, or deductions u/s 80G are allowable only if the investment/ payment has been made on or before 31st March 2021.
4. Advance Tax Payment
Under the Income Tax Act, a person (other than senior citizens without any professional income) with a tax liability of above Rs.10,000 is liable to pay advance tax in four instalments which is before July 15 - September 15 - December 15 - March 15.
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.
5. Furnishing of Form 12B in case of salaried employees
Form 12B is a form that is to be submitted to the new employer when the employee joins new organisation so as to avail tax deductions on employee's total salary. The main purpose of the form is to furnish details of the income earned by the individual from the previous employer. The new organisation will be able to deduct exact TDS based on the details provided in Form 12B before March 31.
6. Claiming reimbursements in case of salaried employees
Salaried individuals will get reimbursements on the basis of their salary structure like medical reimbursements, telephone expenses, leave travel, house rent allowance etc. For claiming such tax exemption, salaried individuals need to submit the proof of such expenses to their employers.
7. Availing benefit of Vivad se Vishwas Scheme
Vivad se Vishwas Scheme is a scheme for settling pending disputes relating to direct taxes. The Central Board of Direct Taxes (CBDT) further extended the due date for filing declaration under the 'Vivad Se Vishwas' (VSV) scheme till 31 March, 2021. As per a CBDT's notification, the date for payment of tax without additional interest under VSV remains unchanged at 30 April, 2021
8. Calculation of GST Turnover
The total turnover up to 31st March is to be calculated for the purpose of determining the important aspects of GST like applicability of GST Registration, Eligibility of opting Composition Scheme, and Applicability of Filing of specific returns.
9. Reconciling the GST Ledgers
Payments of GST are done through tax credit or through challan payments. The taxpayers should reconcile the Cash Ledger, Credit Ledger and Liability Ledger on GSTN portal with their books of accounts. For this purpose, all the entries should be done before the year end. Debit notes, credit notes, rate difference, discount, etc are also to be reconciled.
10. Minimum Compulsory Contribution to PPF Account
The minimum contribution amount is Rs. 500 in PPF Account every year to avoid the account from becoming dormant. The same is the case with NPS account. To keep the account active, we have to deposit minimum Rs.500 in the account. A frozen account can be reactivated by paying a nominal penalty and one time contribution of Rs. 500.
I hope that these points will help you to tick off the important items from the checklist required.
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