Today is the last day of the financial year 2020-21 and individuals must not miss completing several key financial tasks ranging from linking their Aadhaar numbers with PAN card to advance tax filing. Missing these can make individuals face issues in key financial transactions and in some cases even huge penalties.
So, without wasting any more time, individuals must rush to these tasks and complete them today itself.
Aadhaar-PAN linking deadline
The deadline for linking the Aadhaar card with Permanent Account Number (PAN) card will end today i.e. March 31, 2021. According to a notification from the Central Board of Direct Taxes (CBDT), if the two are not linked by the stipulated deadline, then PAN may become ‘inoperative’. This means that users will no longer be able to conduct any financial transactions where quoting PAN is mandatory.
Also, recently government passed the Finance Bill 2021 in the Lok Sabha and inserted a new section 234H under which a person may be liable to pay a late fee of up to Rs 1,000 in case of non-linking of their PAN with Aadhaar. However, a detailed clarification regarding this is still pending.
Belated ITR filing
Taxpayers who have not filed ITR for FY19-20 can still do it till today with a late fine of Rs 10,000. According to the Income Tax (I-T) department, an assessee who does not submit a return of income within the deadline is allowed to file a belated return at a later time. However, certain penalty charges are applicable in case of a belated income tax return (ITR).
A belated income tax return attracts a late filing fee under Section 234F of the Income Tax Act.
Tax saving investments
For individuals who have opted for the old tax system, it is necessary to complete the tax-saving investments by March 31. If they do not invest according to the declaration till this period, then they will not be able to reduce the income tax liability for FY20-21.
Minimum deposit in investment schemes
The last day to deposit a minimum amount in some of the investment avenues will come to an end today. It is important to note that some investment options such as Public Provident Fund (PPF) and National Pension System (NPS) require users to deposit a minimum amount every financial year to ensure that the account remains active.
To keep the PPF account active, customers are required to at least make a minimum investment of Rs 500 in it every financial year. For NPS subscribers, a minimum contribution of Rs 500 is required in Tier 1 account while for Tier 2 account, Rs 250 is needed.
Advance Tax
Under the Income Tax Law of India, a person — except for senior citizens without any professional income — with a tax liability of over Rs 10,000 is liable to pay advance tax. Such a taxpayer is liable to pay advance tax in four installments — before July 15, September 15, December 15 and March 15
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