You could say that all of life is a series of last chances as Opportunity neglected can never be recovered and nothing is more expensive than a missed opportunity and we never learn from first mistake or second mistake or third. It only hit us when we are given the last chance.
I have listed out things that one must take care of before March ends:
Last chance to file Belated returns for the financial year 2019-20 :- If the taxpayer has not yet filed the income tax return for the financial year 2019-20, then it is last chance to file the returns upto 31st march. After that the said returns cannot be filed. Though Filing belated return attracts Penalty but it is always advisable to file the belated Return with penalty instead of not filing and being open to future contingencies of stringent punishments and prosecution.
Calculate Your Income Tax Liability for FYR 2020-21 :- If self-calculated income tax liability is over and above 10,000 you are liable to pay advance tax before 31st March 2021. Failing which you shall be exposed to interest liability for the year.
Download your Form 26 AS verify TDS deducted. Similarly, taxpayer should also verify the Income as mentioned in 26 AS with Books of Accounts. Also check the EFT transactions like purchase of mutual funds above Rs. 2 Lakh, purchase of four wheeler above Rs. 10 Lakh, purchase or sale of property above Rs. 50 Lakh, etc are reflecting in the Form 26 AS or not.
Check Your Total Income for the FYR 2020-21 :- If your total income from all sources is up to 5 Lakhs then there is no tax due to relief under section 87. But if Total income increases even by a single rupees over and above 5 Lakhs the tax Liability shoots up minimum Rs 13,000/-. So Make calculations of your total income in comparison with 26AS and try to bring it down by using the available tax saving options.
Lock into FMP (Fixed Maturity Plan) of Mutual Funds : FMP’s are close ended debt schemes Like debt funds gains from FMPs held for more than 3 years are treated as LTCG and Taxed at Lower rate of 20% giving you the indexation benefit for the same.
Link Your PAN with Adhar Card :- Your PAN may be declared as inoperative if not linked to your Adhar Card before 31st March. Also Penalty of Rs 10,000 may be imposed for failure to do the same.
Provide Correct information to the Employer : Salaried Employee should give the details of Investments and deductions to Employer so that less TDS will be deducted in the month of march and any mismatch with 26AS be corrected by employer.
File Form 15 G/ H Declarations – The taxpayers who have income from interest only and it is less than the prescribed limit, then they can file manually or online in Form 15 G/ H.
Investments in small savings schemes – Investors looking to invest in fixed income options can look at National Savings Certificates (NSC) and Kisan Vikas Patras, offering 6.8 per cent and 6.9 per cent return, respectively. Hence, investors planning to purchase NSCs and KVPs will not be affected if bought before 31 March.
Reconciliation of bank statements – It is very important to reconcile all the bank accounts and loan accounts at the year end.
Closing Stock Verification – All the taxpayers should do the verification of Stock at the year end. Along with that, verification of immovable property should also be done and match them with book value. If it will not match, then prepare the reconciliation statement.