31st March, 2022 is around the corner. The taxpayers must make sure that they complete the following 10 income tax tasks before the deadline of 31st March ends.
1. Filing of Income Tax Return by 31st March, 2022
If you are an assessee whose books of accounts are not to be audited. Moreover, you have still not filed your Income Tax Return for the financial year 2020-21. Then you are very likely to face a penalty. If your income is below Rs. 5 lacs, then you will face a penalty of Rs. 1,000. On the other hand, if your total income is above Rs. 5 lacs, then you will have to pay a penalty of Rs. 5,000. The rule is applicable to all taxpayers and the penalty must be paid even if you are filing for a non-taxable amount.
In addition, the income tax department can also charge you a penalty of 50 per cent of tax payable and you could, in extreme cases, face a jail term of three years.
Furthermore, if you fail to file ITR before the deadline, then you will also have to pay higher TDS, TCS from April 1, 2022.
Also Read: Do I Need To File Income Tax Return?
2. E-verify ITR
Mere filing of ITR is not enough, you need to e-verify the same before the deadline (31st March) ends. The Income Tax department will consider the income tax returns valid only after it is verified. It should be noted that the Central Board of Direct Taxes or CBDT has given a one-time relaxation to taxpayers to e-verify ITR, which cannot be done once the deadline is over.
3. Aadhaar-PAN link
If you do not get your Aadhaar card linked with your PAN card by 31st March, you will be penalised (up to Rs 10,000) and your PAN card may also be deactivated. Once your PAN card becomes non-functional, you may not be able to invest in mutual funds, stocks, or open a bank account. If not linked on time, your Demat and trading accounts can get ceased too. Additionally, you will be liable to pay a fine of up to Rs 1,000 in case you link your Aadhaar and PAN card after the deadline ends.
4. KYC update of bank account
The deadline for bank account KYC update was extended to 31st March, 2022, by the Reserve Bank of India (RBI). For KYC update, bank account holders need to submit their most recent information — including their Aadhaar, PAN, address proof, passport and other such information provided by the bank. In case of failure to update KYC, bank account holders are likely to risk their accounts being frozen.
5. Linking small savings schemes with bank account/post office savings
Account holders need to link their small savings schemes accounts with a post office account to continue receiving interest credit on time. This needs to be done before the 31st March deadline. In a circular, the Department of Post had recently said interest on MIS/SCSS/TD accounts shall be credited only in the account holder’s PO Savings Account or Bank Account from April 2022.
6. Tax planning
If you are an investor, it’s always good to not delay your tax planning until the last minute. March 31 is the deadline to review your tax planning. In case you do not make the tax-saving investments and expenditures by the deadline ends, your tax burden for the fiscal year 2021-22 would be higher. Investors should ensure they have deposited the required amount in tax-advantaged accounts like the Public Provident Fund (PPF). The accounts will become dormant if the minimum amount is not deposited.
Also Read: 10 Best Ways to Save Taxes
7. Advance tax payment
Taxpayers who need to pay advance tax should do so by March 31st. It should be noted that any taxpayer who needs to pay Rs 10,000 or more for the year is required to pay advance tax.
Also Read: All About Advance Tax Under Income Tax Act
8. Maintaining your PPF account
In order to maintain PPF account, you need to make deposit before 31st March, 2022. This can be done so by making an annual deposit of Rs 500. If not deposited before March 31st, your PPF account can go dormant. Further, you will be required to make some payment to get the same reactivated and thereafter continue the annual deposit of Rs 500.
Also Read: Know About Public Provident Fund
9. Update KYC in PM kisan
In order to receive the next installment before March 31, 2022, eligible farmers must update their KYC. They can use online or offline methods. “eKYC is MANDATORY for PMKISAN Registered Farmers.
10. Avail PMAY housing subsidy
In case you want to benefit from the Pradhan Mantri Awas Yojana and receive a subsidy. It is important, you must pay attention to the third and final phase of the PMAY programme, which will meet its deadline on March 31, 2022.
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