5 Personal Finance Tasks You Need To Conduct In March

Because the month of March 2022 has already begun, Indian citizens must complete a number of financial responsibilities by the conclusion of the month. Several deadlines, such as the final day for submitting a belated or updated income tax return (ITR), the PAN-Aadhaar link, and others, are approaching in March. As a consequence, here are the five most crucial financial tasks to consider and do, if any are applicable to you.

Filing belated or revised Income Tax Return (ITR)

The deadline for filing a revised income tax return (ITR) is 31st March 2022. Following the epidemic of Covid-19, the government has extended the deadline for reporting updated ITRs for FY 2020-21 from December 31, 2021 to March 31, 2022. Also because the deadline for filing a belated or revised return for AY 2021-22 is March 31, 2022, you must submit your updated or belated ITR on or before that date to avoid a penalty under Section 234F of the Income-tax Act of 1961. You can submit your revised ITR by logging in to incometax.gov.in/iec/foportal.

Aadhaar-PAN link

Following the government extended deadline from September 30, 2021 to March 31, 2022, Aadhaar linking with PAN is now possible till March 31, 2022. To avoid PAN becoming inactive, these two most important documents should be linked on or before the deadline. As a result of possessing an invalid PAN, you may be subject to a Rs 10,000 penalty under section 272B. To know how to link PAN-Aadhaar, please click here.

KYC compliance of bank accounts

The Reserve Bank of India (RBI) has set a deadline of March 31, 2022, for periodic updation of KYC in order to prevent restrictions on account operations for non-compliance. The account holder can avoid having his or her bank account suspended by satisfying KYC compliance.

Making contributions towards your tax saving instruments

As a tax saver, keep in mind that beginning in FY 2021-22, an individual can choose between the old and new tax regimes, making use of tax exemptions. As a result, it's critical to make sure you've made the needed minimum contribution before the end of the fiscal year to keep your tax-saving instrument operational. As a result, you must ensure that you have successfully deposited the required contribution in your tax-saving instrument on or by March 31, 2022, or your tax-saving funds would become invalid and your tax liability for the fiscal year 2021-22 will be increased.

Payment of advance tax

According to the guidelines of the Income Tax Department "As per section 208, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of "advance tax". In this part, you can gain knowledge on various provisions relating to payment of advance tax by a taxpayer. However, a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax."

As per the Income Tax Department, advance tax is to be paid in different installments. The due dates for payment of different installments of advance tax are 15th June for a minimum of 15% of advance tax, 15th Sept for a minimum of 45% of advance tax, 15th Dec for a minimum of 75% of advance tax and 15th March for a minimum of 100% of advance tax. Any tax paid till 31st March will be treated as advance tax.