Year End Five Crucial Income Tax Tasks to Complete by March 31, 2024
Year End Five Crucial Income Tax Tasks to Complete by March 31, 2024
As the current financial year draws to a close, it’s essential for taxpayers to wrap up all income tax-related tasks by March 31. This ensures a smooth transition into the new fiscal year and helps avoid penalties or complications. Here are the key tasks you need to focus on:
1. Investing in Tax Saving Schemes:
Tax-saving investments are a vital part of tax planning for taxpayers in India. Under the old tax regime, individuals can make investments eligible for deductions under Section 80C of the Income-Tax Act, 1961, before the March 31 deadline. Options include Public Provident Funds (PPF) and tax-saving fixed deposits. Maximizing deductions under Section 80C reduces tax liabilities and ensures future financial security.
2. Advance Tax Payment:
For taxpayers who missed the March 15 deadline for advance tax payments, March 31 offers a chance to catch up and avoid penalties under Section 234B of the Income-Tax Act. Any tax payment made on or before March 31 qualifies as advance tax, provided it covers more than 90% of the assessed tax amount.
3. Submitting Form 12B to New Employer:
If you’ve switched jobs during the fiscal year (April 1, 2023, to March 31, 2024), it’s crucial to submit Form 12B to your new employer. This form ensures the accurate calculation of total taxable income, correct tax deductions, and the issuance of Form 16.
4. Filing Updated Returns:
March 31 is the last date for taxpayers to file their updated Income-Tax Return (ITR-U) for the Assessment Year 2021-22 (financial year 2020-21). This provides an opportunity for those who missed the initial filing deadline to rectify the omission and comply with tax regulations.
5. Minimum Investment in Government Schemes:
Government savings schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) require a minimum annual investment. If you haven’t met the minimum investment amount for the current financial year, you have until March 31, 2024, to do so and avoid penalties.
Conclusion:
The end of the financial year is an ideal time to assess your finances and strategize for the upcoming year. Review your budget, savings, and investments to ensure they align with your long-term financial goals. Consider any adjustments or improvements you can make to enhance your financial stability and growth.
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