March is here and like always the end of the month will be hectic. Many of us will scramble to get papers to submit for tax purposes at work. There are six things that can help you be income tax compliant.
1. Link Aadhaar with PAN:
Have you linked your PAN and Aadhaar yet? It is a must if you want your tax returns to be processed. If you haven’t, then do so before 31st March 2022.
2. File pending IT returns
The last date for filing the Income-tax return for AY 2020-21 (Assessment year) is 31st March. If you haven’t filed your returns for the same period, then do so before the month ends. . Your tax returns will include the penalty and interest for delay in filing taxes.
3. Calculate deductions
Individual taxpayers can invest in specific investment/saving sachemes such as FDs, NSC, ELSS, ULIPS etc., to avail deductions u/s 80C, 80D, and 80G. Understanding these calculations can help you diversify you save in taxes as well as create an investment.
4. Invest to claim deductions
You can invest in various instruments to claim exemptions and deductions while earning handsome returns. Make sure you invest before 31st March to include it in the current financial year (FY22)and claim deductions.
5. Claim reimbursements
Do you have your expense receipts ready to claim reimbursements? If you haven’t, then collect your medical, telephone, leave travel, and house rent receipts to submit as proof of expenses to your employer right now.
6. Compulsory investment under PPF
Do you have a PPF account? If yes, then you must contribute at least Rs. 500 to the account every financial year. March end is the last day to contribute to your PPF account
Well, the points mentioned above are based on individual requirements. But we have a handy checklist that can help you keep a track of documents and proofs needed to be tax-ready.
Read more: How Long-term investing helps create life-changing wealth – TOI.