Important Points for Taxpayer to do before 31st March 2020 – Income Tax
As we are all aware that the Financial year 19-20 is coming to end. 31st March 2020 is the last date for the Financial Year. So all the taxpayers has to complete their financial obligation on or before 31.03.2020 . Some of the important points for Taxpayers to do before 31st March 2020 are as follows :
- Filing of Income Tax Return: In case you haven’t filed your income tax return for the FY 18-19 / AY 19-20 , then you must file your belated return before 31st March 2020. Since it will be a belated return there will be Late Fees for late filing u/s 234 F.If your income is below Rs 5 lakh Late Fees is Rs 1,000 and in case income is above Rs 5 Lakh Late Fees is Rs 10,000. After 31.03.2020 the Income Tax Return for FY 2018-19 / AY 2019-20 cannot be filed.
- Link your Adhaar with your PAN: Linking of adhaar and PAN is mandatory for PAN holders who are required to file their Income Tax Return. If Adhaar and PAN is not linked within this date the PAN will be deactivated. Also, Penalty of Rs 10,000 may be levied for the same. Process to link adhaar with PAN is given here.
Deduction under Income Tax: In Income Tax certain deduction is allowed to taxpayer if some investment is made to certain specific sectors then the taxpayer can avail tax benefit.Taxpayers can avail deduction u/s 80C,80D,80G etc by making investments before 31.03.2020.
Calculate your Income: You can calculate your Total Income and plan to save your Tax. In case Total Income is upto Rs 5 lakh then the eligible assesse is allowed rebate of Rs 12,500 or 100% of Tax whichever is lower. Suppose your income exceeds Rs 5 lakh even by one rupee then the rebate vanishes.So you can save tax by donating to specified organization,taking medical insurance of self,parents,contributing to NPS as contribution to NPS u/s 80CCD(1B) is over and above 80C. So plan your Income accordingly and do the investments before 31st March 2020.
Pay Your Advance Tax: As the last date of last installment was 15th March but in case you have missed that out pay it before 31st March 2020 so that a little less interest will be levied.
In case Salaried Employee submit your exemption/deduction proof : In case of salaried employee they are not required to pay advance Tax as TDS is deducted by employer and deposited in their account but to reduce the TDS deduction the salaried employee should submit their proof of investment in any made under 80C,80D,80G etc to their employer,also submit proof of rent paid if you are getting any HRA.This will allow the employer to calculate the tax properly and less TDS will be deducted.
Compulsory Investment in PPF:If the assesse has a PPF Account, then there is minimum amount of Rs 500 which is required to be deposited to your PPF Account to keep your account active. So in case you have missed out to deposit, deposit it before 31st March 2020