Information on 7 Actions to be Taken Before 31st March 2021
As we tend to approach the finish of the year, there are tasks that we want to finish by 31st March 2021. a number of such task includes Submitting the small points of salaries received from the earlier employer, Submit the proof of expenses to your employer, the substantiative quantum of deductions out there from your bank records, Payment of advance tax, creating Minimum contribution to PPF accounts, and NPS account, Filing your unfinished tax come for the year 2019-2020 and Booking of long-run capital gains on listed shares and equity mutual funds schemes upto Rs. 1 Lakh to for an equivalent. allow us to discuss some of the details-
1. Submitting the main points of salaries received from earlier Employer
If a salaried and were utilized with quite one boss within the current year, please furnish details of your salaries from the previous employer/s in type no. 12B, to your current boss forthwith therefore on guarantee correct tax deductions on your combination earnings earning is formed by the present Employer. just in case you fail to try to do therefore, you will get a shock at the time of filing your Income Tax Returns (ITR) finding that you just have vast tax (along with interest) to pay. This happens as a result of all the employers would have given the advantages of initial exemption additionally as numerous deductions ensuing into the deduction of lower tax on a combined basis.
2. Submit the proof of expenses to your leader
There are sure exemptions that are offered to workers on expenses really incurred. For things like House Rent Allowance (HRA) and Leave Travel Assistance (LTA) unless you submit the mandatory documents, the leader can treat these allowances as assessable and deduct tax on it. If you fail to submit the documents, you’ll still claim this stuff as exempt and claim the refund for the surplus tax whereas filing your ITR.
3. Verify the quantum of deductions offered from your bank records
Most folks use the ECS debit facility for things like life assurance premium, SIP for equity coupled saving schemes (ELSS), House Rent Allowance EMIs, etc. it’d have happened that, because of any reason, the ECS may not are debited. Likewise, even just in case you have got issued a cheque for such things, identical may not are nevertheless bestowed to the bank, therefore please verify the main points from your financial statement and cross certify for all the eligible deductions factored into by your amounts are debited in your checking account. just in case some things haven’t been debited, please make sure that either the payment created is formed is created} for identical or investments are made in an alternate product offered before the year finishes.
4. Payment of advance tax
You’re needed to pay advance tax on your current year’s income, just in case your net tax liabilities for the year when reducing the tax subtracted at supply from all the sources exceeds 10 thousand rupees. Senior voters not engaged in any business or profession aren’t needed to pay advance tax. although advance tax needs to be paid in four installments within with the ratio of 15%, 30%, 30%, and 25% however just in case you miss all the four instalments a minimum of pay identical by31st March, as advance tax paid by 31stMarch is additionally treated as advance tax. Failure to pay adequate advance tax appeals relative interest.
Even if you’re salaried and tax has been subtracted from your wage, you continue to ought to pay advance tax on the other financial gain like rent, interest, dividend, capital gains, etc. just in case the combination liabilities exceed ten thousand. For freelance wherever the tax subtracted isn’t comfortable enough to hide the combination liabilities, they even have to pay advance tax. Even in cases of interest financial gain wherever the tax is subtracted at source at the rate of 10%, You’ll still pay advance tax just in case you’re in higher tax block.
5. Minimum contribution to PPF accounts and NPS account
Just in case you’ve got a PPF account either in your own name or within the name of kids or relation, you’ve got to contribute minimum of Rs. 500/- annually in every account to avoid the account changing into dormant. A savings account is created as an active account by payment of a nominal quantity and contribution of Rs. 500/- for every year of default. Likewise, Just in case you’ve got AN NPS account, you would like to deposit a minimum of Rs. five hundred per annum in your account failing that the account gets frozen. A frozen account is reactivated by paying a nominal penalty and just one occasion contribution of Rs. 500.
6. File your unfinished taxation come back for the financial year 2019-2020
Just in case you’ve got not nonetheless filed your taxation come back for the last financial year i.e. 2019-2020, you’ve got the last likelihood to file it by31 March 2021 that too with a penalty.
7 Long Term Capital Booking and Gains on listed shares and equity mutual funds schemes upto Rs. 1 lakh.
As Section, 112A future capital gains on listed equity shares and equity destined schemes are totally exempt upto Rs. one large integer, and also the balance ar taxed @ 100%. thus you’ll be able to book future capital gains upto one large integer of rupees before march 31 March, 2021 just in case not nonetheless reserved. just in case you’ve got created these investments for the future, you will arrange to sell the shares the same day and purchase an equivalent the next day or perform these transactions with totally different brokers on an equivalent day. The acquisition and redemption of the units are done an equivalent day. By this strategy, you’ll be able to minimize your overall liabilities.
I’m certain this discussion can assist you in taking higher care of your investments and taxes.