Don’t miss the deadline of March 31st for income tax obligations

As the tax year draws to a close on March 31, people have a short window of time to complete their income tax responsibilities.

To avoid fines or problems, taxpayers must make sure their income tax obligations are fulfilled by March 31. Therefore, it’s necessary to examine the important activities that must be completed before this crucial deadline in more detail.

According to Manmeet Kaur of Karanjawala & Co., it’s imperative that you pay advance tax by March 31 in order to avoid complications.

To increase your Section 80C deductions, think about investing in plans like PPF, ELSS, or other tax-saving fixed deposits. Do not forget to file Form 12B if you changed employment in the previous year. Additionally, remember to get all of your TDS certificates from employers and other sources of income,” Kaur said.

Investments and tax planning are important tasks. March 31 is the deadline for investments to be eligible for deductions under Section 80C of the Income-Tax Act, 1961 for individuals in India who are still subject to the previous tax system. People scramble to maximize their tax advantages before the deadline, whether it is via PPF donations or tax-saving fixed deposits.

For those who failed to meet the March 15 deadline for paying advance taxes, March 31 is also very important. As long as taxpayers pay more than 90% of the assessed tax before March 31st, any tax paid by that date is considered advance tax and exempts them from penalties under Section 234B.

Throughout the fiscal year, advance tax is collected on a quarterly basis, with deadlines on June 15, September 15, December 15, and March 15. Before March 15, 2024, salaried persons who have additional income sources such as rent or fixed deposits are required to pay advance tax. Seniors over 60 who do not earn money from a company are nevertheless excluded.

Form 12B must be sent to the new employer by salaried workers who change positions between April 1, 2023, and March 31, 2024. This form aids in the precise computation of total taxable income for Form 16 issues and appropriate tax deductions.

If a salaried taxpayer changes employment within the current fiscal year (that is, between April 1, 2023, and March 31, 2024), and they haven’t filed Form 12B yet, they need to do so immediately with their new employer. According to businesstoday.in, Yeeshu Sehgal, Head of Tax Market at AKM Global, “this will help the new employer calculate total taxable income for the year and deduct the correct amount of tax along with the issue of Form 16 to the taxpayer accordingly.”

Additionally, the deadline for filing amended Income-Tax Returns (ITR-U) for the Assessment Year 2021–22 (financial year 2020–21) is March 31. With this extension of the deadline, late filers may correct any omissions.