The current financial year is coming to an end today, 31st March 2022. And from tomorrow onwards that is 1st April 2022, the new financial year will start. With the end of this financial year comes a set of responsibilities for everyone and also to prepare for the coming financial year.
Here's all you need to do before the financial year 2021-22 ends.
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It's a no-brainer to file your ITR before the year ends. So, if you are a salaried man, you should do it today only! If not, then you will have to pay penalty fees which of Rs 5,000 under Section 234F of the Income Tax Act and if your total income is below Rs 5 lakh, then you have to pay Rs 1,000.
The income tax department can also charge you a penalty of 50 percent of tax payable and in extreme cases, you can face a prison charges for up to three years.
And if you file your ITR any time after today, then you have to pay a higher TDS.
2. E-verify ITR
Not only do you have to file your ITR, you also have to e-verify it, all by the end of today!
The Income Tax department will consider the income tax returns valid only after it is verified.
You can e-verify your ITR by visiting the website- incometax.gov.in/iec/foportal and clicking on the e-verify return option on the homepage.
You can do so via Aadhar OTP, net banking, bank account, Demat account, bank ATM, or Digital Signature Certificate.
3. Aadhar-PAN link-
It is imperative you like your Aadhar card and PAN card by the end of today or you will have to pay a penalty up to Rs 10,000 and your PAN card might be deactivated as well! This might cause issues for investing and your Demat and trading accounts can get ceased too.
4. KYC update of bank account-
For KYC update, you need to submit your Aadhaar, PAN, address proof, passport, and other such information provided by the bank. The RBI extended the deadline to do this by 31st March 2022 and failure to do so can leave your accounts frozen!
5. Tax Planning-
By the end of today, you need to make the tax-saving investments and expenditures. If not, then your tax burden for the fiscal year 2021-22 would be higher.
Investors should also ensure they have deposited the required amount in tax-advantaged accounts like the Public Provident Fund (PPF) to keep their accounts from getting dormant. You will need to make some payments to get the same reactivated and thereafter continue the annual deposit of the required amount.
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