Within a few days 31st March 2023 is arriving, with that many deadlines will be arriving under Income Tax and GST as well. It’s gonna be hectic for both the professionals and their clients to get things completed. Therefore, to avoid the last minute chaos, let us find out what are the things that needs our attention by March end.
1. Link your PAN with 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. With a fee of Rs 1,000 you can link the PAN card to Aadhaar.
If a PAN card is not connected to Aadhaar by March end, 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.
Read More : Easy way of linking Pan with Aadhar
2. 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 Rs 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 FY 2022-23 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.
Read More: Advance Tax Dates, slab, interest, Calculation payment
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3. Investment in Tax saving options
For the fiscal year 2022-23, 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 2023 end.
Read Also: Save Tax: 10 Income Tax planning Tips for FY 2022-23
4. 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 2022-23, needs to furnish Form 12B by the end of 31st March 2023. 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.
Read Also: Income Tax: Which Salary Components are Taxable?
5. 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.
Read also: PPF vs EPF : Difference between EPF and PPF
6. ITR-U for FY 2019-20
Last date to file ITR (Income Tax Return) under section 139(1) for FY 2019-20 or AY 2020-21 is gone, however, still one can file Income Tax Return. The Finance Act, of 2022 has introduced a new concept of updated Income Tax Return (ITR-U), which has permitted taxpayers to file their ITRs after two years of due date of the filing, subject to payment of additional taxes.
For FY 2019-20, the ITR-U can be filed by 31st March 2023 with 50% of aggregate of tax and interest payable.
Read More: ITR-U: Full details to File ITR for FY 2019-20, 2020-21 and 2021-22
7. Furnish LUT (Letter of undertaking)
The facility to furnish a LUT for FY 2023-24 is available on the GST portal. The date of expiry of the validity of LUT is 31st March 2023.
All registered taxpayers who export the goods or services will have to furnish Letter of Undertaking (LUT) in GST RFD-11 form on the GST portal in order to make exports without payment of IGST.
Read More at LUT under GST : Letter of undertaking – how to apply, procedure
8. Opt Composition scheme
A taxpayer whose turnover is below Rs 1.5 crore can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75 lakh. A taxpayers supply services having turnover below Rs 50 lakh can also opt for composition scheme. Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.
The last day to opt in the composition scheme is end of March i.e. 31-03-2023.
Read Also: GST – Should you opt composition scheme or not?
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