Tax Planning: Last Minute Checks For Taxpayers Before March 31 Deadline

You can file belated returns for this financial return with a penalty of Rs1000 or Rs 5000 depending on your income on or before 31st March 2022

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New Delhi: It is that time of the year when taxpayers get a final chance to review their tax planning as the ongoing financial year 2021-22 is coming to a close on March 31.

It becomes important for salaried employees to complete a few financial tasks before the deadline to avoid any penalty or missing out on tax benefits.

Check financial tasks below befor March 31 deadline

1) Linking aadhaar card and PAN: It is important to note that the last date to link PAN and Aadhar is 31st March In absence to do that, the PAN will be deactivated and a fine of up to Rs10,000 can be imposed on the assessee. "Link your PAN & Aadhaar to enable quick & easy e-verification of ITRs. The due date to link your Aadhaar & PAN is 31st March, 2022," tweeted Income Tax India.

2) Filing of Belated or Revised Return on or before 31st March 2022:  The income tax department has asked taxpayers to check their Annual Information Statement (AIS) or Form 26AS (Tax Credit) to know if they need to file Income Tax Returns (ITR) or not.

You can file late returns for this financial return with a penalty of Rs1000 or Rs 5000 depending on your income on or before 31st March 2022. A penalty of Rs 1,000 is levied in case gross income is above Rs 2,50,000 and below Rs 5,00,000. If the gross income exceeds Rs 5,00,000 then the penalty levied is Rs.10,000 but due to pandemic a tax relief has been given and the penalty charged is Rs 5,000.

Also, note that you can't file ITR for the relevant financial year either physically or electronically after 31st March 2022.

4) Payment of advance tax: Also, notet that the last instalment due date for payment of advance tax is 15th March 2022. However, the assessee can deposit the advance tax for FY 21-22 anytime on or before 31st March 2022.

5) Investment in tax-saving schemes: All taxpayers need to note that the last date to invest in tax saving schemes for FY 21-22 is 31st March 2022. You can save tax by investing up to Rs 1.5 lakh under Section 80C. Some of the schemes are Public Provident Fund, National Pension Scheme, Sukanya Samriddhi Yojana, etc.

6) KYC Update: 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. In absence to meet the deadline, the bank account may get freezed.