Income Tax Alert! 10 Financial Tasks You Must Do Before March 31
It's a complete list of crucial financial tasks which need to be done before March 31, 2020.
Here is the complete list of 10 important financial things you need to do before March 31.
1. File your pending Tax Return
If the taxpayers have not filed their tax return for belated financial year of 2018-2019 by July 31, 2019, they can file it by March 31, 2020.
This will be the final deadline to file your tax return. However, one needs to pay penalty for late filing. The minimum fine will be Rs.1000 whose income is below Rs 5 lakh in a year.
In case, you do not file the tax by this deadline then a prosecution charge or high penalty can be faced by you.
2. Know your Tax liability
If you are working for an organization then the income tax will be deducted itself by the employer. Or else, if you are having a self business and work then you need to pay the tax by yourself on the basis of your income.
A person needs to pay an advance tax if the tax payable is more than Rs 10 thousand on his income. Through challan 280 the advance can be paid.
3. Calculate your annual income
If the annual income of a person is upto Rs 5 lakh then there is no tax payable. Under the Section 87A, there is no tax return for an annual income of Rs 5 lakh. You need to calculate your all the income sources.
An exceeding of a single rupee can withdraw the tax benefit. Importantly, including buy of health insurance, donations to particular organizations are eligible to deduct the tax under section 80C.
4. Investment schemes
The National Savings Certificate and Kisa Vikas Patras are the best options to invest in fixed income. NSG is offering 7.9% where Kisa Vikas Patras provides 7.6% interest rate.
Though, there could be slight changes in the interest rates of small saving schemes linked to govt.
5. COVID-19 Health insurance
You will be surprised that a number of insurance companies are covering coronavirus. Under the tax relief, you can claim a tax deduction for a health insurance of up to 25,000. Even you can get a tax relief of up to 25,000 by purchasing medical premium for your parents.
6. Stocks & equity funds
Currently the stocks are down but a number of investors are sailing on a long term profits. Capital gains above Rs 1 lakh in a year are taxable. To reset the purchase price of the stocks & funds you can sell them before 31 March. And purchase the stocks and equity funds again.
7. Fixed maturity plans, funds
These are the specified plans and mutual funds which lock till maturity. It ensures a stable return in the future. Short-term capital gains tax is installed as per your income tax slab on Fixed Maturity Plan with tenure of less than 36 months.
8. PM Vaya Vandana Yojana (PMVVY)
The final deadline to avail the benefits of Pradhan Mantri Vaya Vandana Yojana (PMVVY) is March 31, 2020. This government schemes offers a lifetime pension where you need to deposit premiums for 10 years. This plan gives an assured return to the old age people.
9. Term insurance
The best way to get a high cover within a low price is life insurance's term plans. From April 1, there will be a rise by 20% in the premiums of term plans due to an alteration in reinsurance rates. Despite a rise, everyone should know the importance of the life insurance premiums.
10. Link Aadhar with PAN
The last date to link your PAN with Aadhar is March 31, 2020 which had extended by the government. You need to make sure that you do not fail to link you Aadhar & PAN. Otherwise a heavy penalty of Rs 10,000 will be imposed on you by the Income Tax Department.
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