5 Financial Tasks To Do Before 30 June 2020

This year, there have been many relaxations provided by the government on various investment and tax-related deadlines amid the COVID-19 outbreak. From income tax returns filings to submission of form 15G/H, many deadlines have been extended to help the common man comply with regulations despite social distancing measures and transportation obstructions to visit a bank, post office or a government office.

Here are 5 such tasks you need to complete before 30 June 2020:

1. Tax saving investments for FY 2019-20

While the financial year 2019-20 ended on 30 March, some were unable to make timely payments towards various tax saving investments for the year due to the nationwide lockdown.

The government has provided extra time to investors facing cash crunch to be able to claim tax benefits under Section 80C, 80D and 80G on payments made towards LIC policies, PPF, NSC, other small savings schemes, health insurance and donations. These could be made till 30 June to become applicable for the previous financial year.

The Central Board of Direct Taxes (CBDT) has also notified of new forms which include a provision to make income tax deductions or exemption claims for payments made towards tax-saving investments made between 1 April 2020 and 30 June 2020 under the DI Schedule due to the tax-saving deadline extension.

2. Submit Form 15G or 15H (even for dividend income)

The Central Board of Direct Taxes (CBDT) had said that it will allow Form 15G/Form 15H submitted by taxpayers for FY 2019-20 to remain valid till 30 June 2020 for the current FY 2020-21.

While Form 15G/H needs to be submitted for lower or nil deduction by the first week of April, this time, for FY 2020-21, you will need to submit it within the first week of July 2020.

Further, note that starting 1 April 2020, dividend income earned on shares of an Indian company or from a mutual fund scheme is taxable in the hands of the receiver based on the tax rate applicable to their total income.

The dividend earned will be part of their total income earned for the financial year 2020-21 and tax as per their respective tax slabs.

Therefore, if your dividend income is within exempted limits, you will need to submit Form 15G or Form 15H to the company or a mutual fund you invest in, to avoid tax.

3. Pay dues related to post office/small savings schemes

For the account to remain operational in some of the post office savings schemes like PPF (Public Provident Fund), Sukanya Samriddhi Scheme, etc, there is a minimum deposit amount that needs to be contributed every year. As the lockdown was announced on the interim night of 24 March, many of the subscribers of these schemes were not able to comply with the rules of depositing such minimum payment.

Consequentially, the Department of Posts had issued a notification that subscribers can pay their dues, if any, till 30 June and no penalty or revival fee would be charged during this period.

However, these deposits made after 30 March will not earn any interest for the previous year 2019-20.

4. ITR for FY 2018-19

As per income tax rules, the end of the assessment year is the deadline to file belated and/or revised income tax returns (ITR) for the previous financial year. Accordingly, the last date to file ITR for the FY 2018-19 was 31 March 2020.

However, due to unusual circumstances due the COVID-19 outbreak, the CBDT has extended the deadline to file belated and/or revised ITRs for FY 2018-19 to 30 June 2020.

5. Link PAN with Aadhaar

The deadline to link PAN with Aadhaar has been extended to 30 June 2020. On failing to do so within the deadline, the PAN will become invalid.