31 March 2023, is rapidly approaching as the fiscal year 2022–2023 comes to an end. 31 March is a significant date. There are several assignments that if not finished by 31 March, will result in a late fee, difficulties in finishing the work, or possibly leaving you unable to do the task in the future. Hence, rather than waiting until 31 March to complete any tasks that are unfinished, do them right away.
Your advisor and consultant, JJ Tax, is always available to serve you.
Link PAN with Aadhar number
The Income Tax department has now made it mandatory to link Aadhaar with Permanent Account Number (PAN) by 31 March 2023. If the PAN is not linked within the given due date, it will become inoperative from 1 April 2023.
Consider a scenario where you can't open a bank account, invest in stocks, avail of government subsidies, create passports, etc.
All of this is possible for you if you didn’t link your Aadhaar number to your PAN card. To avoid this, link your Aadhaar number to your PAN card with a late fee of Rs. 1,000 by March 31, 2023.
Also, you can confirm it through the income tax portal if you are unsure whether your Aadhaar number has been linked to your PAN card or not.
Updated ITR Filing
Have you ever neglected to disclose income or erroneously filled out an ITR?
You have a chance to revise your ITR within two years of the end of the relevant assessment year in which the initial return was filed, according to Section 139(8A) of the Income Tax Act.
The deadline to file the updated return with the additional tax to be paid as 50% of the total of tax and interest, if anyone made an error or omitted certain income information for FY 2019–20, is 31 March 2023. Taxpayers cannot file such a return after the deadline has passed.
It is important to remember that the updated return cannot be filed if there are refunds or in case of any tax proceeding for assessment or reassessment under the income-tax act is pending or has been completed for the relevant assessment year.
Advance Tax Payment
Income tax follows the principle of “Pay as You Earn”. Thus, the advance tax due date is on or before the following dates payable Quarter-wise: 15 June 2022, 15 September 2022, 15 December 2022, and 15 March 2023.
Interest will begin from 1 April, 2023, and last until the month of the payment if an assessee has not paid at least 90% of the tax due by way of advance tax by 31 March 2023, or on or before that day.
Hence, an assessee should calculate his estimated taxable income as accurately as possible and pay advance tax before 31 March to avoid interest u/s 234B and 234C.
In case you have not yet paid the entire advance tax liability for 2022–2023 by 15 March, then you have the chance to pay it by 31 March, 2023. Post-March, 1% interest per month has to be paid on the due amount until the payment or filing of the ITR.
Mutual Funds nominee
Individual mutual fund unit holders can nominate a person to claim their units or the redemption proceeds thereof in the event of their death. When units are held by more than one person jointly, all joint unit holders can nominate a person to whom all rights in the units would transfer upon their death. They have the option of declining the nomination.
Investors with demat accounts are required by the Securities and Exchange Board of India (SEBI) to submit either the nomination form or a declaration stating that they are opting out of the nomination. Prior to 31 March,2023. Investors who do not comply with this norm will have their investments frozen from Debit.
Investors are allowed to do so by way of two-factor authentication login on trading platforms for stock brokers or depository participants providing such services.
Pradhan Mantri Vaya Vandana Yojana
PMVY is an insurance policy-cum-pension scheme that provides security. The programme is open to senior citizens over the age of 60; there is no upper age limit. This pension plan is provided by Life Insurance Corporation (LIC), which caters to the insurer’s need for post-retirement financial planning. A senior can invest up to Rs 15 lakh here. The deadline for accepting these plans is March 31, 2023. For ten years, the PMVY programme promises an interest rate of 7.4%. Pension payments can be made to subscribers every month, every quarter, every six months, or annually.
Tax Exemptions on Life Insurance Premium
Presently, premiums paid for all insurance policies are tax-free. The most significant change proposed in the Union Budget is the take of the tax-free benefit from savings insurance plans issued (other than ULIPs) with annual premiums exceeding Rs 5 lakhs. The tax exemption granted to the money paid upon the insured's death and the insurance policies issued until March 31, 2023, will not be impacted by this.
Thus, invest it before March 31, 2023, if you wish to receive a tax-free annual premium of Rs 5 lakhs or more.
Investment to save Tax
Under Section 80C of the Income Tax Act, you are enabled to claim tax deductions with the highest limit of Rs 1.5 lakhs, provided you have chosen the old tax regime. Some of the tax-saving ways for investment in 2023 include ELSS Funds, Sukanya Samriddhi Yojana , National Pension System (NPS), Senior Citizen Savings Scheme (SCSS), Public Provident Fund (PPF), National Savings Certificates (NSCs), Equity oriented mutual fund, Health Insurance Investment, Home Loan, Invest in Unit-Linked Insurance Plans and Fixed deposits (FDs) of 5 years or more.
An ELSS fund, or equity-linked savings scheme, is the only kind of mutual fund eligible for tax deductions under the provisions of Section 80C of the Income Tax Act of 1961. Investing in ELSS mutual funds comes with the dual benefit of tax deductions and wealth accumulation over time. ELSS mutual funds have a lock-in period of just three years, the shortest among all tax-saving investments, and have the potential to offer the highest returns among 80C options.
