The ending month of the financial year, i.e. March, is the most crucial month for completing various personal finance tasks related to ITR filing, advance tax payments, and many more. There are several deadlines that are due in March 2022 that you need to be aware of. Moreover, March 31, 2022, is the deadline date for numerous essential duties and tasks which can impact your finances, failing which you may even be liable for a penalty.
If you have not completed these tasks, now is the right time to do so.
Five Financial Deadlines expiring on March 31, 2022
Let us read more about what these important deadlines are and what tasks need to be done before then. Here are 5 important tasks and their deadlines that you need to complete before March 31, 2022.
1. Aadhar - PAN Linking
March 31, 2022, is not just the end of the fiscal year but also the last date for linking your PAN card with your Aadhar Card. Linking PAN card with Aadhar Card is now compulsory for all, except NRIs and non-individuals (such as trust, partnership, etc).
Note that the deadline to link PAN card with Aadhar Card is March 31, 2022. If the Government does not extend the deadline for PAN-Aadhar linkage, your PAN Card may be non-operational from April 1, 2022. You may also have to pay a fine of ₹1,000. Moreover, if your PAN card becomes inoperative, you will be unable to use your bank accounts for stock trading and investments in mutual funds.
The Central Government had previously extended the date for 6 months for linking of Aadhar card and PAN card from September 30, 2021, to March 31, 2022.
Know how to link Aadhar card with PAN card by following one of these three simple methods -
- By sending an SMS to PAN Service Providers
- On the e-filing website of the I-T Department
- By filling up an offline form
2. Belated ITR Filing
The last date for filing belated or revised Income Tax Return (ITR) for AY 2021-2022 is March 31, 2022. Failure to file the belated ITR before the due date can result in a penalty of up to ₹10,000, according to Section 234F of the Income-tax Act, 1961. All taxpayers who have to file their late or revised returns for FY 2020-21 must file their ITR before this due date, i.e. March 31, 2022. Please note that you can make changes to your filed ITR before 12 am on March 31 if there is an error after the e-filing of tax returns. The maximum late filing penalty for taxpayers with a total income below ₹5 lakh in a year is ₹1,000.
3. Updating KYC in your bank account
All bank customers must furnish their latest information to their banks and financial institutions where they have accounts, latest by the deadline of March 31, 2022. The Reserve Bank of India had extended the last date for updating Know Your Customer (KYC) information in bank accounts from December 31, 2021, to March 31, 2022. Most recent information of customers such as PAN, address proof (such as Aadhaar, passport, etc.), and any other information requested by the bank must be submitted to the banking institutions before the last date.
4. Tax Saving Investments
March 31, 2022, is the last date to invest in tax-saving instruments and make your tax planning in time for FY 2021-2022. Most people put off tax planning until the very last date and this should be avoided to escape last-minute hassles and mistakes. Prepare your tax-saving investments as soon as possible in funds such as Public Provident Fund (PPF), ELSS mutual funds, the National Pension System (NPS), and more. Note that under Section 80C, a maximum deduction of ₹1.5 lakh is allowed which is one of the most important tax-saving measures for an individual.
A ₹50,000 tax benefit for NPS contributions under section 80CCD (1B), ₹50,000 tax benefit on medical insurance premiums, is also allowed which helps in financial planning and saving tax.
Also, remember to contribute a minimum amount of funds in PPF to avoid closing of your account. If you have a PPF account in your own name or in the name of children or spouse, you have to contribute a minimum of ₹500 every year in each account, failing which the account will become dormant.
5. Paying Advance Tax
Advance tax is paid in 4 installments in the ratio of 15%, 30%, 30%, and 25%. If your income tax is more than ₹10,000 in a year, you are liable to pay advance tax to the I-T department. If you have missed all 4 installments of the fiscal year, you can pay the whole amount before March 31, 2022. You can also pay 25%, i.e. the last installment before this due date of March 31, 2022. You may face a penalty if you fail to pay tax in advance.
It is important to note that the last date for availing PMAY housing subsidy under the Pradhan Mantri Awas Yojana is also March 31, 2022. If you wish to file your application in the final and third phase of the PMAY scheme, the deadline to do so is March 31, 2022.
The last date for submitting Form 12B is also March 31, 2022. Form 12B is filled by a salaried individual if s/he joins any new organization in the middle of the year. For example, if you have switched jobs during the financial year 2021-22, you need to submit the details of income under Form 12B to your employer. This form will be used to deduct exact TDS based on the information you have furnished in Form 12B. Form 12B needs to be submitted before March 31, 2022.
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