Within a few days 31st March 2022 is arriving, with that many deadlines will be arriving under Income Tax , GST and other compliances as well. It’s gonna be hectic to get things completed on last date. Why not to plan in advance. Therefore, to avoid the last minute chaos, let us find out what are the things that needs our attention by 31st march 2022. Here are 10 such personal finance tasks to be completed before March, 2022 ends.
Things need to be done by 31st March 2022
1. Advance Tax
All assesee except senior citizens who don’t have any business or professional income or not having income tax liability exceeding Rs 10,000 is liable to pay advance tax in four instalments, i.e. before July 15, September 15, December 15 and March 15. However, any payment made on or before 31st march will still be considered as Advance Tax.
But, if the tax is not paid on or before the deadline, the taxpayer will be charged 1 percent interest per month for deferment in instalment and 1 percent interest per month if only 90 percent of the total amount is paid before the end of the Financial Year.
2. Filing belated or revised ITR
The deadline to file a belated income tax return or revised ITR for the AY 2021-22 is March 31, 2022. The penalty for a late ITR, according to Section 234F of the Income-tax Act, 1961, could be up to Rs 10,000. Also, the maximum penalty for late filing is Rs 1,000 for taxpayers with total income of less than Rs 5 lakh in a financial year. If you e-file your late ITR on March 31, 2022, you can still revise it online on the last day (at or before 12.00 am) if a mistake is identified after it is e-filed.
P.S. — DON’T wait for the last date, because the server can ditch you anytime.
3. Linking with PAN and Aadhaar
PAN-Aadhaar linking can be done till March 31, 2022 after the government extended the deadline from September 30, 2021. You are required to link the two documents under existing laws. Furthermore, your Aadhaar number must be provided when submitting an ITR, asking for a new PAN and receiving government benefits such as pension, scholarship or LPG subsidy.
Failure to link PAN and Aadhaar by March 31, 2022 will lead to your PAN becoming inactive and you may be levied a penalty of Rs 1,000 under Section 272B of the Income Tax Act. It will be assumed that you have not provided your PAN as required by law.
Read Also: Easy way of linking Pan with Aadhar
4. Tax Saving Investment
Never avoid tax planning, else you can never avoid tax paying. Government of India has laid down certain ways through which taxpayer can reduce their Income tax liability. Tax planning is considered important part of a financial planning whether you’re a salaried person, a businessman or a professional, by proper tax planning you can save taxes to great extent. Saving income tax requires proper tax planning.
The Financial year 2021-22 is about to end which will be assessed in the Assessment year 2022-2. Remember that if you do not make the tax-saving investments and expenditures by this month, your tax burden for the fiscal year 2021-22 would be higher. As March 31 is the last day of the fiscal year, make sure you have deposited the required amount in tax-advantaged accounts like the Public Provident Fund. The accounts will become dormant if the minimum amount is not deposited.
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5. Submission of Form 12B
Salaried individuals when joins any new organization in the middle of the year or have changed job during the financial year 2021-2022, needs to furnish Form 12B by the end of 31st march 2022. After furnishing the details of income using Form 12B, an organization will be able to deduct exact TDS based on the details provided in Form 12B before March 31.
6. Opt in GST Composition Scheme
Composition scheme is specially designed for small taxpayers, to get rid of complex GST framework and compliances. Small registered taxpayers can pay tax at fixed rate on the basis of their turnover. The due date for opting the composition for FY 2022-23 is 31st March 2022. Taxpayers who are already registered under this scheme are not required to opt in again for current year.
7. Submitting LUT
Goods and Services Tax Network (“GSTN”) has enabled facility for filing Letter of Understanding (“LUT”) for FY 2022-23 on GST Portal for taxpayers. LUT application is required to be completed before March 31, 2022 or before supply for Exports and SEZ.
8. Updating KYC in your bank accounts
The RBI has extended the deadline for completing KYC in bank accounts till March 31, 2022 from the former deadline of December 31, 2021. Bank customers are expected to submit their most recent information, including PAN, address proof (such as Aadhaar, passport etc.) and any other information requested by the bank. It is mandatory for regulated entities to collect KYC information from their customers under the provisions of The Prevention of Money-Laundering Act, 2002 and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005.
9. Availing PMAY housing subsidy
The Ministry of Housing and Urban Poverty Alleviation (MoHUPA) launched the Credit Linked Subsidy Scheme (CLSS) in June, 2015 under the Pradhan Mantri Awas Yojana (PMAY- Urban)- Housing for All initiative. The final of the three phases of the PMAY scheme ends on March 31, 2022. So if you want to take advantage of the Pradhan Mantri Awas Yojana and avail the subsidy, do it now.
10. Save PPF/NPS/SSY account from deactivation
In order to keep certain investments like PPF, NPS, Sukanya Samriddhi Account (SSY) active, a minimum amount needs to be deposited in the account every financial year. Failure to deposit the minimum amount in PPF, SSY, NPS will result in closure of accounts and will have to be regularized or unfreezed before making new investments. Reactivating the account may take time and you may also have to pay a fine. To avoid this, the minimum amount should be deposited in the account in time.
The minimum annual contribution for a PPF account in a financial year is Rs 500. Failure to do so may result in closure of the account and further withdrawal will not be allowed. It is mandatory for NPS account holders to make a minimum contribution of Rs 1,000. Similarly, to keep the Sukanya Samriddhi account active, it is necessary to deposit a minimum of Rs 250 in every financial year.
Above are some of the compliances with respect to GST and Income Tax which needs to be kept in, mind before 31.03.22 ends and to avoid Departments message knocking one’s head.
Note- Please don’t wait for the last date for complying with the above points, if applicable because server will start crashing and professionals will be busy as well.
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