As yet another financial year, FY 2023, is coming to an end soon, it is now time to be aware of the important financial deadlines that lie ahead for the year. In case you miss this, you would need to pay a penalty or face other consequences.
With March 2023 just a day around, it becomes all the more important that you pro-actively assess and complete all your financial tasks well before the March 31, 2023 deadline to avoid any paying penalties
As yet another financial year, FY 2023, is coming to an end soon, it is now time to be aware of the important financial deadlines that lie ahead for the year. In case you miss this, you would need to pay a penalty or face other consequences.
Listed below are some important tasks that you must complete by the March 31, 2023 deadline.
PAN-Aadhaar Linking: The Income Tax (I-T) department has now made it mandatory to link Aadhaar with permanent account number (PAN) by March 31, 2023. If the PAN is not linked within the given due date, it will become inoperative from April 1, 2023.
After the deadline, taxpayers can link the two by paying a fine of Rs 1,000. You could do this on the National Securities Depository Limited (NSDL) portal by paying the amount under challan number ITNS 280 with major head 0021 (Income Tax Other Than Companies) and minor head 500 (Other Receipts). It is important to note that while income tax returns can be filed without linking the two, the department does not process the returns until PAN and Aadhaar are linked.
Updated Income-Tax Return Filing: March 31, 2023 is the deadline for filing an updated income tax return (ITR) for FY2019-2020. It is meant for those taxpayers who have missed filing the income tax returns for the given financial year or those who missed reporting any income.
“Updated return is a provision introduced in the Finance Act 2022 that allows individuals who may have missed out on declaring some income to do so within a longer deadline. You could file the updated return within two years from the end of the relevant assessment year (based on certain terms and conditions). Hence, as a taxpayer if you have missed filing your income tax for the financial year 2019-20, you could certainly do it now,” says Suneel Dasari, founder, CEO, EZTax.in, an online income tax filing portal.
Advance Tax Payment: According to the I-T department, the last date for payment of the final instalment of the advance tax payment is March 15, 2023. If the last day for payment of any instalment of advance tax is a day on which the banks are closed, then the taxpayer should pay the advance tax on the immediately following working day. In case of any default in payment of advance tax, the taxpayer would be subjected to penalties under Section 234B and 243C of the Income-tax Act 1961.
Tax-Saving Investments: March 31, 2023 is also the deadline for tax-saving investments for FY2022-23. Tax planning helps you to reduce tax liability and save more. The lesser tax you pay, the more disposable income you have. Hence, you must leverage on available tax-saving options to save a significant amount of taxes.
Pradhan Mantri Vaya Vandana Yojana: PMVY is an insurance policy-cum-pension scheme that provides security to senior citizens. This pension plan is provided by Life Insurance Corporation (LIC), which caters to the insurer’s need for post-retirement financial planning. Here, a senior citizen can invest up to Rs 15 lakh. These schemes will be accepted till March 31, 2023. The PMVY scheme guarantees an interest of 7.4 per cent for 10 years. The subscriber can receive the pension on a monthly, quarterly, semi-annually, or annual basis.