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Published: Mar 17, 2023
Updated: Mar 17, 2023

Don't Miss These 5 Financial Tasks Before March 31 - PAN-Aadhaar Link, ITR, Tax Saving Investment, Advance Tax and Form 12BB

As the financial year 2022-23 draws to a close, Indian taxpayers need to complete various financial tasks before March 31 to avoid any financial losses. From linking PAN card and Aadhaar Card to submitting the updated income tax return (ITR), missing these deadlines may lead to penalties and additional charges. Here are the top five financial tasks that must be completed before March 31, 2023:

PAN-Aadhaar Link- Though be ready to pay penalty of 1000 Rs.

The Income Tax Department (I-T Dept) has set March 31, 2023, as the deadline for linking PAN and Aadhaar. If the Aadhaar is not attached to the PAN by the deadline, it will become inoperative from April 1. Taxpayers must link the two cards for free by March 31, as after that, they will have to pay a fee of Rs 1,000.

Updated ITR

March 31 is also the last date for submitting the updated ITR for FY20 or assessment year 2020-21 (AY21). Taxpayers must file the updated ITR if they missed any income details or made any errors while filing the ITR in FY20. They can also file the updated ITR if they did not file it at all. However, those with zero or negative returns cannot file the updated ITR.

Form 12BB

Salaried employees must submit form 12BB to their employers before March 31 to claim tax benefits or rebates on their investments. This form includes details such as House Rent Allowance (HRA), Leave Travel Concessions (LTC), and interest on the home loan.

Tax Saving Investment

Investments made before March 31, 2023, will be eligible for claiming deductions 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).

Advance Tax

Taxpayers with a tax liability of over Rs 10,000 must pay advance tax in four instalments. The first instalment of 15% of the due tax is paid by June 15, the next 30% by September 25, another 30% by December 15, and the remaining 25% by March 15 of the ongoing financial year. If a person has changed their job or has additional income, they need to calculate and pay the additional tax in advance by March 31; else, they will be charged 1% per month of interest on the due amount. Meeting these deadlines is essential for Indian taxpayers to avoid any financial losses. So, ensure you complete these five financial tasks before March 31, 2023, to stay on top of your finances.