Just one day left! You must complete these seven tasks before financial year ends
Check out the list of personal finance tasks that need to be completed by March 31. Individuals who fail to meet these requirements will have to pay penalties or face other consequences
As the financial year is about to end, there are many changes that will be applicable from April 1. While there are some deadlines extended by the government, a few still exist. These range from tax planning to filing an updated income tax return (ITR). Individuals who fail to meet these requirements will have to pay penalties or face other consequences and investors have only one day left to complete these seven personal finance tasks listed below, Let's have a quick glance at these tasks:
1. Filing updated ITR for FY19-20
Taxpayers who have missed filing the income tax return for FY 2019-20 should file an updated ITR by March 31, 2023, as this will be their last chance to claim a return on their income earned in FY 2019-20. The Finance Act of 2022 introduced the concept of updated returns to allow a longer duration for an assessee to file the return of income. An updated return can be filed within 24 months (2 years) from the end of the relevant assessment year (subject to certain conditions).
2. Opt for tax-saving investment
Taxpayers who want to save tax for FY 2022-23 should invest in a tax-saving instrument and should do so before March 31. Tax planning is an important component of financial planning as it helps in reducing tax liability. The lower the tax rate, the more disposable the income. Taking advantage of available tax-saving options can result in significant tax savings.
Also Read: Income Tax: How will AI, Machine learning, and data analytics simplify tax process in India?
3. Investing in special FD schemes
Many banks are providing the general public with special FD schemes which have high-interest rates, and the deadline to avail the benefit of these schemes is March 31.
4. Investing in debt mutual funds
As debt mutual funds will no longer have the benefit of Long Term Capital Gain (LTCG) after March 31, this is an opportunity for investors to invest in debt mutual funds. However, this should be tactically done.
5. Submit form 12b
Individuals who join a new company or a new organisation in the middle of the year are required to submit form 12b under rule 26A. The form basically discloses information regarding the individual's previous income.
While new employers can't force anyone to submit form 12B, it is always advisable to do the same to reduce the tax burden and start with proper tax planning.
ALSO READ: Income Tax Return 2023: Check ITR Filling Last Date, How to e-File Income Tax Returns Online - all you need to know detail process
6. Insurance with high premium
Investors considering purchasing high-priced insurance policies should do so by March 31, 2023. From April 1, if an individual pays more than Rs 5 lakh in premium for a savings life policy, the income from the policy will be taxed at maturity. The Rs 5 lakh threshold will apply only to the first-year premium and not to the first-year plus renewal.
7. Investing in Pradhan Mantri Vaya Vandana Yojana
Retired senior citizens can avail the benefit of Pradhan Mantri Vaya Vandana Yojana, by investing in the scheme till March 31, 2023. The scheme provides investors with a guaranteed pension at the rate of 7.4 per cent for 10 years which can be between Rs 1,000 to Rs 9,250 per month.
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