The financial year is now ending. So, many business owners would be busy with balance sheets and other crucial accounting tasks. The urgency of these chores climbs significantly. Estimating your advance taxes and making investments to save taxes is the major task to do while the year ends.
The fiscal year in India runs from 1 April to 31 March each year. As a result, the 31st of March is a significant deadline for businesses to ensure that all vital financial commitments are achieved, important things are done, and other requirements are completed. So, here are a few important things to remember before the fiscal year closes.
Tax planning is a crucial aspect of financial planning. The literate tax-planning method could assist individuals to reach their financial objectives while also saving money on taxes. Hence Tax-saving investments must be undertaken before the financial year ends. Here are some Tax saving investment options.
| Sr No. | Tax Saving Investment Options | Tax Benefit Under Section |
|---|---|---|
| 1 | Life Insurance | Section 80C (Premium) Section 10 (D) (Death / Maturity) |
| 2 | Pension Plans | Section 80CCC(sub-section under Section 80C) |
| 3 | Health insurance or Mediclaim | Section 80D |
| 4 | NPS | Section 80CCD |
| 5 | Tax-saving mutual funds | Section 80C Section 10(D) (Death/Maturity) |
The deadline for connecting Aadhar with a PAN is March 31, 2023. If this is not done, your PAN card will become inoperable, and you will be unable to conduct financial activities that require a PAN number. Importantly, the PAN is required for opening bank accounts, purchasing stocks or mutual funds, and so forth. Additionally, for KYC purposes, most financial institutions need users to furnish their PAN. Inactive PANs may have a negative influence on the account.
Those who have sources of income other than their wage must pay advance tax. Advance tax is sometimes referred to as the 'Pay as you Earn' plan. If your tax burden exceeds Rs.10,000 in a fiscal year, you must pay the tax. This applies to rent, capital gains from stocks, fixed deposits, lottery prizes, and so forth. Non-payment of advance tax will attract interest under 234B: As per Section 234B, you must pay at least 90% of the total taxes as advance tax by 31st March. Failure to make advance tax payments will result in an interest of 1% on the unpaid amount.
The return you are now filling is for the income generated in the fiscal year 2022-23, i.e. between 1 April 2022 and 31 March 2023. The assessment year is the fiscal year 2022-23 in which you file your returns and disclose your investments for tax purposes. It is crucial to maintain your tax returns up to date. The revised income-tax return for FY 2019-2020 or AY 2020-21 must be submitted by March 31, 2023, since it cannot be filed after the deadline has passed.
Form 12B is an income tax form that must be filled out by a paid person who joins a new organization in the midst of the year. If you changed jobs during the fiscal year 2022, you must report your new earnings on Form 12B. Your new company will be able to deduct accurate TDS depending on the information given on Form 12B by March 31.
It is usually beneficial to maintain such a checklist on hand towards the fiscal year's end; it stops you from becoming disorganized while you collect various papers, submit ITRs, and complete the needed investment-related actions. As a result, it is wise not to wait until the last minute to complete your financial year-end obligations.
Therefore, financial knowledge is important. If you are financially literate, it will help you better understand the complexities of financial planning, tax savings, and investment. Moneyedge helps you with expert advice on all your financial concerns which leads you to your financial goals safely.
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