We are close to the end of FY23 and FY24 will begin from April 1. Around this time, most of us are busy making new investment plans. March 2023 is significant from a personal finance point of view as there are some important tasks to be completed in the month ranging from PAN-Aadhaar linking to planning taxes. Missing these means you would have to pay penalties or face other consequences.
Link your PAN with Your Aadhaar Card
The Income Tax Department has announced March 31, 2023, as the last date to link your PAN card with Aadhaar. PAN and Aadhaar can be linked now along with a penalty of Rs 1000. If you don’t link both ID cards before the final deadline, your PAN will become inoperative. The last date to link PAN and Aadhaar without a penalty was June 30, 2022.
Updated ITR
The last date for submitting the updated ITR for FY20 or assessment year 2020-21 (AY21) is March 31. The taxpayers must file the updated ITR if they omitted certain income details or made any error while filing the ITR in FY20. It can also be filed if the ITR was not filed in FY20 at all. However, those with zero or negative returns cannot file the updated ITR.
Form 12BB
The last date to file form 12BB is also March 31. A salaried employee must submit this form to the employer to claim tax benefits or rebates on their investments. This came into effect on June 1, 2016. Some items that must be included in the form are House Rent Allowance (HRA), Leave Travel Concessions (LTC) and interest on the home loan.
Tax Saving Investment
The investments done before March 31, 2023, will be available to claim deduction under the old income tax regime while filing the ITR for FY23. Under Section 80C of the Income Tax Act, taxpayers can claim deductions with a limit of Rs 1.5 lakh in the old tax regime. Some investment avenues that can be looked at for this are Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS) and National Pension Scheme (NPS).
Pay Advance Tax
Every taxpayer with a tax liability of over Rs 10,000 must pay advance tax. It is paid in four instalments. 15 per cent of the due tax is paid by June 15, the next 30 per cent by September 25, another 30 per cent by December 15, and the remaining 25 per cent by March 15 of the ongoing financial year.
If the person has changed their job or has additional income, they need to calculate and pay the additional tax in advance by March 31. If it is delayed post that, the taxpayer is charged 1 per cent per month of interest on the due amount.
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