Those who fail to do so within the stipulated period must pay Rs 1,000 as a fine.
It’s important to complete all your pending tasks related to income and finances well before March 31, as the fiscal year is coming to a close.
As the 2022-2023 fiscal year ends on March 31, it’s time to be aware of the important deadlines related to your income and business to avoid penalties. If you do not do this, you will have to pay a fine or face other consequences.
The following are some critical tasks that must be completed before March 31, 2023.
PAN-Aadhaar Link: The Income Tax Department (IT) has now mandated linking Aadhaar with your Permanent Account Number (PAN) as of March 31, 2023. If the PAN is not linked by the deadline, it will become inactive on April 1. 2023.
Those who fail to do so within the stipulated period must pay Rs 1,000 as a fine. You can do this by paying the amount under challan number ITNS 280 with major head 0021 (Income Tax Other Than Companies) and minor head 500 on the National Securities Depository Limited (NSDL) portal (Other Receipts). Although income tax returns can be filed without linking the two, the department will not process the returns until the PAN and Aadhaar are linked.
Prepayment Tax: According to the IT Department, the last installment of the withholding tax payment is due March 15, 2023. If the last day for payment of a withholding tax installment is a day when banks are closed, the taxpayer must pay the withholding tax on the next business day. In the event of non-payment of input tax, the taxpayer will face penalties under Sections 234B and 243C of the Income Tax Act of 1961.
Tax Saving Investments: The tax saving investment deadline for FY2022-23 is March 31, 2023. With tax planning, you can reduce tax liability and save more money. As a result, you should take advantage of available tax saving options to save a significant amount of money. So if you have not made an investment to get the benefits under Section 80C or 80D of the Income Tax Act, you must do so before March 31. The investments made in the current financial year only qualify for tax exemptions.
Pradhan Mantri Vaya Vandana Yojana (PMVY): PMVVY is an insurance-cumulative-pension plan that provides security to senior citizens. Life Insurance Corporation (LIC) offers this retirement plan to meet the insurer’s need for financial planning after retirement. A senior citizen can invest up to Rs 15 lakh. These proposals will be accepted until March 31, 2023. For ten years, the PMVVY scheme guarantees an interest rate of 7.4 percent. The pension can be received by the member on a monthly, quarterly, half-yearly or annual basis.
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