There are various financial deadlines that one needs to know before it ends on March 31, which ranges from PAN-Aadhaar linking, to payment of advance tax. The missing of these deadlines can lead to payment of penalties and other consequences.
Here’s a list of things that one needs to look out for:
PAN-Aadhaar linking
The Income Tax Department has made it mandatory for PAN holders to link it with Aadhaar by the end of March this year or it will be rendered ‘inoperative.’
Individuals will be restricted from filing the income-tax return or accessing PAN-related services failing to link Aadhaar and PAN card by 31 March, 2023.
“After 31st March 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers,” the Central Board of Direct Taxes (CBDT) said in a notification on March 30, 2022.
A late fee of ₹1,000 will be applicable to link PAN and Aadhaar.
Advance tax payment
The last date to pay final installment of advance tax payment for Financial year 2022 – 2023 is 15th March, 2023, according to the Income Tax department. On this date 100 per cent of advance tax liability has to be paid by taxpayers.
As per section 208 of the Income Tax Act, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of “advance tax”.
However, a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax.
Advance tax is tax payable by individuals who have sources of income other than their salary. This is applicable to rent, capital gains from shares, fixed deposits, lottery winnings, etc.
File updated ITR for FY19-20
The deadline to file updated income tax return (ITR) for FY 2019-20 is March 31, 2023.
Taxpayers who missed filing it for FY19-20 or have missed reporting any income can file an updated ITR or ITR-U. The Finance Act of 2022 introduced the concept of updated returns to allow a longer duration for an assessee to file the return of income.
Updated return can be filed within 24 months from the end of the relevant assessment year, subject to certain conditions.
Investing in Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana (PMVVY), introduced in 2019, provides a regular income to senior citizens. The last date to invest in it is 31 march, 2023.
Anyone above the age of 60 years can participate in the scheme, and there is no maximum entry age, with a tenure of 10 years from the date of issue.
Presently, the scheme offers an interest rate of 7.4 per cent per annum. The interest rate remains the same for the entire tenure of 10 years. Senior citizen can invest a maximum amount of ₹15 lakh in PMVVY.
Tax saving investment
The deadline for tax-saving investments for FY2022-23 will end on March 31, 2023. This is important for ones who opt for the old tax regime for the financial year 2022-23. Taxpayers can claim various deductions for their investments under the old tax regime.
If you fall into taxable income category and have not yet done any tax saving for the soon to be FY 2022-23. One of popular deductions is section 80 which allows a taxpayer to claim a deduction of up to ₹1.5 lakh from various investments including premiums paid for life insurance policies, PPF, and ELSS among others. The other one is 80D, which is premiums paid for health insurance policies. An additional deduction of ₹50,000 for investing in the National Pension System (NPS).