Financial year 2020-21 is reaching to its ends in few days. 31st March is an important deadline with reference to tax Planning, missing it may result in higher tax liability. We are required to complete our tax planning before 31st march 2021, as we are required to file Income tax return for FY 2020-21 during 2021-22. For claiming many deductions and exemptions in our income tax return, we need to take right step before 31st march 2021. So if you have not completed your tax planning for FY 2020-201 you are left with few days only. For your reference, given below is the list of eleven important financial decisions which are required to be taken before 31st march 2021.<\/p>\n\n\n\n
In budget 2018, Long term capital gain (covered under STT) above Rs. 100000\/- are made taxable @ 10%. This tax on long term capital gain is applicable w.e.f. 01-04-2018. Hence upto 31-03-2018, all long term capital gains (covered under STT) was exempt u\/s 10(38). Still you have to decide regarding LTCG on the basis of your equity planning and market price of your portfolio.<\/p>\n\n\n\n
Review your portfolio for tax planning on capital gain. For example if in your return you have carried forwarded any short term capital loss which is allowed to carry forward only upto 8 assessment years. If this is your 8th year, review your portfolio any if any short term capital gain is available, sell the shares and book short term capital gain to adjust carried forwarded short term capital loss(STCL) otherwise this will laspe. You can buy your shares again by paying marginal brokerage which you have to bear. But remember that sell and buy transaction should not be done on the same day.<\/p>\n\n\n\n
U\/s 80C a deduction of Rs 1,50,000 can be claimed, it means An Individual or HUF can reduce your total taxable income up to Rs 1,50,000 from through section 80C. Section 80C provides list of investments\/ expenditures which is allowed as deduction. If you are short of limit u\/s 80C, you are left with only few days to consider option best suitable to you, by investing in these you will get deduction u\/s 80C from upto Rs. 150000\/-. List of some important investment deductible u\/s 80C is given below:<\/p>\n\n\n\n
Although the cut off date for investment in tax saving instrument was extended upto 31st July for last year i.e. FY 2019-20 but for FY 2020-21 the cutoff date for these investment is 31st march 2021 and is not yet extended.<\/p>\n\n\n\n
U\/s 80CCD(1B) a deduction of Rs 50,000 can be claimed which is over & above the limit of Rs. 150000\/- u\/s 80C. If you are in 30% Tax bracket then making an contribution to NPS is going to save immediate Rs. 15000\/- of your tax. You may decide to open an NPS account if you have not opened earlier or contribute to earlier opened account.<\/p>\n\n\n\n
If you have chosen to invest in any social security schemes like Public Provident Fund (PPF), National Pension Scheme(NPS) or Sukanya Samridhi Yojana (SSY) etc. which requires a minimum amount to be deposited in every year to keep them active. If you forgot to invest the minimum amount in these schemes, then you have to pay a penalty along with unpaid amount to make the scheme active again. Make sure that you have deposited at least minimum amount before 31st march 2021.<\/p>\n\n\n\n
If you have not filed your income tax return for financial year 2019-20 or you want to revise your income tax return for 2019-20 (only if assessment is not yet completed) then it is last chance for you because 31st March 2021 is the last date to file your belated or revised income tax return for the FY 2019-20 (AY 20-21)<\/p>\n\n\n\n
As per section 139(4):-<\/p>\n\n\n\n
As per section 139(5):-<\/p>\n\n\n\n
If you have not yet linked your PAN with ADHAAR then 31st March 2021 is deadline for linking the PAN with ADHAAR. This was extended from 31st March 2020 last year. IF ADHAAR is not linked with your PAN then your PAN may be cancelled.<\/p>\n\n\n\n
If you have not filed your TDS or TCS return for quarter 1 (1-4-2020 to 30-6-2020) or Quarter 2 (1-7-2020 to 30-9-2020) then 31st March 2021 is the last date to file these returns. Ensure to file before this deadline to avoid late fee. As per section 234E, where a person fails to file the TDS<\/strong>\/TCS return<\/strong> on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late<\/strong> fees shall not exceed the amount of TDS<\/strong>.<\/p>\n\n\n\n If your tax liability is more than Rs. 10000\/- then make sure that you have paid all tax dues as advance tax. If any sum is pending make sure that it is deposited before 31st march 2021 to reduce your interest liability u\/s 234B. For delayed payments of advanced tax interest u\/s 234B & 234C are charged. <\/p>\n\n\n\n Interest u\/s 234C on last installment if you forgot to pay 100% of your advance tax till 15th March then if you<\/p>\n\n\n\nPayment of tax liability including Advance tax.<\/u><\/strong><\/h3>\n\n\n\n