All you need to do before 31 March 2018
Everyone is rushing for tax saving investments with the financial year coming to an end. But there is lot more to do before this financial year ends. If you want the year to end on good note, then make sure you complete your to-do list well within time. Have this guide handy to complete your tasks by 31 March 2018.
File Income Tax Return for AY2016-17 & AY2017-18
This time 31st March is the last day for filing two years’ income tax return. That means, you have to file your tax returns for AY2016-17 and AY2017-18 by 31st March 2018, after which it will be time-barred. If you are amongst those who have not filed it yet, then you must have received reminder emails and messages from the Income Tax Department. Not filing timely returns might invite for scrutiny assessment and penalties if your income is more than a threshold limit or you have deposited considerable amount of cash to your bank accounts.
Pay advance tax instalment for AY2018-19
You are responsible to deposit tax in advance if your annual tax liability exceeds Rs.10,000. To derive the advance tax amount to be deposited by 15 March 2018, first calculate your income for the financial year 2017-18 i.e. from 01 April 2017 to 31 March 2018 and then deduct tax already deposited through advance taxes & TDS from the tax liability on the calculated income. Failure to deposit final advance tax instalment by 15 March would result in levy of interest on tax payable while filing tax returns for AY2018-19.
Make minimum contribution to PPF & NPS
If you have a PPF account either in your own name or in the name of your children, then ensure to deposit a minimum amount to keep it active. You might have exhausted deduction limit of Rs.150,000 u/s.80C, but you can still deposit a minimum of Rs.500 to keep your PPF account active. On similar lines, your NPS account will be frozen if you do not deposit minimum Rs.1000 a year. Failure to do the above will make your PPF/NPS accounts inactive and you will be charged with penalties to re-activate it.
It is not yet mandatory to have an Aadhaar Number but the list of transactions requiring it is growing by the day. It is a must-have to file your tax returns, make fresh investments, avail subsidies and even to get a domestic gas connection. The extended date for linking Aadhaar with various service providers and host of government services is 31st March 2018. Those who have not finished this strenuous task will have to rush to link Aadhaar Number with Permanent Account Number (PAN card), Bank Accounts, Insurance Policies, Mutual Funds, Broking Account and Mobile Service Provider. Failure in linking it by deadline might take all the benefits and rights away under the respective parties.