New Delhi: Many taxpayers would be rushing to make tax-saving investments if they haven’t done already. There are a few tasks that one needs to perform before the 31 March deadline. Also, the most expensive liability is Government dues! If you owe anything to them, pay it off.
The late payment interest, penalty, late fees, etc., are at least twice the interest one pays on bank
1. Advance tax: Under the Income Tax Law, if a person has a tax liability of more than Rs 10,000 a year (except senior citizens not having professional income), then he is liable to pay Advance Tax in four installments, i.e., before July 15, September 15, December 15 and March 15. If the advance tax is not paid, then 1% interest per month is payable u/s 234C for deferment in instalment and 1% interest per month is payable u/s 234B if 90% of the tax is not paid before the end of the financial year towards default in payment of advance tax.
2. Invest in tax saving instruments: Section 80C provides tax exemption up to Rs 1.50 lakh if the individual or the HUF taxpayer invests or spends in the specified products before the end of the year. For FY 2020-21, such investments are to be done before March 31, 2021. If one misses this date, he loses the benefit. If this deadline is missed then you will not be able to file revised or belated ITR for financial year 2019-20. Belated ITR will be submitted with a late filing fee of Rs10,000 on or before March 31, 2021. borrowings. Holding on to Government money does not make sense.
3. File your belated and revised return: In the case of AY 20-21, the revised return can be filed anytime on or before March 31, 2021, which is the end of that assessment year. But if the I-T Department finishes the assessment (scrutiny assessment or best judgement assessment) before that, that would be the last day to revise your return. You can also revise the ITRs that are filed belatedly. That is, you can revise the return of FY19-20 even if it is filed after January 10, 2021 (due date to file the return) or whatever is the applicable extended due date. Note that the due date to file the belated return, too, is the same as revised returns’ — the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
4. Vivad Se Vishwas: The deadline for filing declaration under Vivad Se Vishwas scheme was extended to 31 March, 2021. As per a Central Board of Direct Taxes’s notification, the date for payment of tax without additional interest under the scheme remains unchanged at 30 April, 2021. The Direct Tax ‘Vivad se Vishwas’ Act, 2020 was enacted on March 17, 2020, with the objective to reduce pending income tax litigation, generate timely revenue for the government and to benefit taxpayers.
5. Linking Aadhar and PAN: March 31, 2021 is also the deadline for linking PAN with Aadhaar. If linking PAN with Aadhaar is not done then it will lead to PAN becoming inoperative.