The echoes of 31st March being crucial date for income Tax filing are heard everywhere. But, do you really know how does it affect you?? What will you miss if you do not abide by the deadline?? Or what are the things you will be benefited in most if, you avail advantage of the last date of FY 2017-18. We bring to you 5 Important Things To Do Before 31st March 2018 which will save your taxes, increase your refunds and protect you from penalties and interest.
Calculate your taxes for AY 2018-19
Financial year 2017-18 is towards its end. It marks for us only handful days left for tax planning. So, calculate your tax liability considering all tax deductions , investments and focus on tax planning. If you have any unabsorbed limit under section 80C, you can still invest in PPF, NSC, FD, LIC etc. In case, your 1.5 lakhs limit is fully exhausted and you have to ponder other options to invest in, you may take a medical policy for self, spouse, dependent child or parents which is deductible u/s 80D. The medical policy taken for senior citizens gives benefit of Rs.30,000/- in taxes and for others it is Rs. 25,000/-. If you have investments in NPS, you can avail additional benefit over and above 1,50,000/- u/s 80CCD (1B) for voluntary contributions made for Rs.50,000/-. Aggregating to a total benefit of Rs 2 Lakhs.
File your ITR for AY 2016-17 and AY 2017-18
Returns for FY 2015-16 and FY 2016-17 cannot be filed anytime later 31st March 2018. So if you any pending tax form to file for these two years it is your last chance to avoid penalty of Rs. 5000/-, interest for taxes unpaid and proceedings for late filing.
Details on whether you can file income tax return for these years and things to be taken care of you may refer our blogs
Revise return for AY 2016-17
A return if filed within due date of section 139(1) (i.e. 31st July or 30th Sep normally), can be revised for any mistakes within the time limit specified under law.
So, if you need to revise the return for AY 2016-17 then before this last chance as per law slips out of your hands, revise it before 31st March 2018. In other words, if you have already filed your return for FY 2015-16 but you wish to make some changes then you just have 15 days left!!
Pay Taxes Due
After making computation for your current year taxes, you may witness any of these three situations
- You may have taxes payable
- You may have refunds receivable
- Neither you might receive refunds nor pay taxes
If you fall in first category your should clear all payments by 31st march. Payments made after end of financial year shall attract interest at 1% per month or part of month.
Share your last employer details with current for correct TDS
New job comes with new responsibilities at work. So does tax impact. In case you have changed a job in a financial year don’t forget to share the details of your old employer with the current. Giving details will enable new employer to calculate accurate TDS and adding of incomes and deductions. This effort of employer will reduce your task at the time of filing ITR.
Hope, by the way of this blog you must have understood the 5 important things which needs to be adhered before 31st March 2018.But these are just some important considerations and not a comprehensive list.