Financial planning should begin at the start of every year. It is crucial to plan to avoid financial risks or jeopardy. However, if you haven’t planned all year and waited till the last minute to carry out crucial financial tasks, here is a checklist of things you need to do.
Invest to save tax
Find time to assess your income for the year and figure out how much you will need to invest in the tax-saving instruments under Section 80C. If you have already invested in tax saving schemes such as Public Provident Fund, National Pension Scheme, Sukanya Samriddhi Yojana, etc. you will need to make a minimum contribution to these accounts before March 31 to keep them active.
File Income Tax returns
The last date for filing income tax returns for the AY 2021-22 has been extended to March 15. Make sure you file your income tax returns before the last date to avoid penalties.
The deadline for linking Aadhaar with Permanent Account Number (PAN) has been extended to March 31. In case it is not done, then your PAN card will become inoperative, and you may not be able to perform financial transactions that require PAN.
Advance tax filing
Under the Income Tax Law of India, a person with a tax liability of over Rs 10,000 is liable to pay advance tax in four installments before March 15. If you are a salaried employee, then your employer may have already deducted it for you. For freelancers and self-employed people, it is mandatory to pay advance tax. If the tax is not paid on or before the deadline, a penalty of 1 percent interest per month for deferment in installment is charged.
Update KYC with bank
The deadline for completing KYC in bank accounts has been extended to March 31. A customer must submit his/her most recent information including PAN, address proof, and other information desired by the bank.
Pay off pending tax
Under the Vivad se Vishwas scheme, all those who have tax appeals or petitions pending can get a complete waiver of interest or penalties if they pay their disputed taxes on or before March 31, 2022. It is advisable to resolve any disputes and pay off the taxes.
(Edited by : Thomas Abraham)