scorecardresearchIncome Tax Filing: 6 key money matters that beckon your attention this

Income Tax Filing: 6 key money matters that beckon your attention this month

Updated: 01 Mar 2023, 08:04 AM IST

The month of March features a number of important financial deadlines, ranging from the final day to file late income tax returns to integrating your PAN and Aadhaar. Go through the article as we discuss all of the critical deadlines for you.

Income Tax Filing: key money matters that beckon your attention this month

Income Tax Filing: key money matters that beckon your attention this month

March is a significant month in terms of finance since it marks the conclusion of the fiscal year and contains various reporting and investment-related deadlines. You might miss out on tax-saving investments for FY 2021-22 if you wait until after March, and you could face fines for missing deadlines. Let us discuss some upcoming financial deadlines that you might want to know before March 2022.

Linking your PAN to Aadhaar

By March 31, 2022, you must link your Permanent Account Number (PAN) to your Aadhaar card. If the PAN card is not linked to Aadhaar by the deadline, it may become invalid, and a charge of 1,000 may be required to link the PAN card to Aadhaar.

If a PAN card is not connected to Aadhaar, an individual will be unable to participate in mutual funds, stocks, or create a bank account, among other things, as all of these activities need the presentation of a PAN card. You can link them online, by sending an SMS to 567678 or 56161 with the word UIDPAN, or offline at the National Securities Depository Limited (NSDL) and UTIITSL.

Completing KYC verification of your bank accounts

The Reserve Bank of India (RBI) has extended the last date for verifying Know Your Customer (KYC) information in bank accounts from December 31, 2021 to March 31, 2022.

Banks need account holders to update their KYC on a regular basis. Customers must provide a set of self-attested papers to their bank branch, including proof of identification and evidence of address. The RBI has now approved the use of digital channels for updating clients' KYC information in a timely manner.

Paying your fourth instalment of advance tax

According to income tax guidelines, if your expected yearly income tax for the current financial year is at least 10,000, you must pay advance income tax in four payments throughout the course of the year. The deadline for your last instalment for revenue generated in 2021-22 is March 15, Tuesday.

This is applicable to all taxpayers, including paid workers, freelancers, and corporations. A resident senior citizen (one who is 60 years old or older) who does not earn money from a company or profession is not required to pay advance tax. Employers are obligated to deduct the necessary tax from the monthly wage and pay it to the department, thus a salaried individual with no other source of income does not need to pay advance tax.

Filing your revised Income tax return

The deadline to file an income tax return (ITR) for the fiscal year 2020-21 was December 31, 2021. However, taxpayers have until March 31, 2022 to file a late return. Additionally, individuals who discover a mistake after completing their income tax return have until March 31, 2022 to file an amended return.

Section 234F of the Income Tax Act imposes a penalty of up to Rs.10,000 for late or late submission of an income tax return. The maximum penalty for late filing is 1,000 for taxpayers with a total income of less than Rs.5 lakh in the financial year.

Availing PMAY subsidy benefits

The Pradhan Mantri Awas Yojana (PMAY) is a government programme that offers low-cost housing to people in the Low-Income Group and Economically Weaker Section. Beneficiaries can get 20-year loans at a rate of 6.5 percent per year.

The PMAY programme began in 2015 and was divided into three sections. The first two stages are already complete, and the last phase will conclude on March 31, 2022. As a result, the PMAY credit-linked subsidy programme benefits for LIG and EWS groups would expire on March 31, 2022.

Consider tax-advantaged Investments

For the fiscal year 2021-22, March will be the last month to make tax-saving investments to minimise your overall tax burden. PPF, tax-advantaged fixed deposits, NSC, and other investments fall under this category. In addition, if you do not deposit the required amount in your PPF account for the financial year, your account may become inactive.

It's vital to remember that your tax-saving investments should fit into your entire investing plan, which means they should maximise your wealth rather than merely save you money.

A penny saved is a penny earned- as the common saying goes, hence, save all you can by meeting all the above financial deadlines before March 2022.


Why should you file ITR even with no taxable income:
First Published: 01 Mar 2023, 08:04 AM IST