9 Tax Things to finish before 31st March, 2021

Taxpayers, Individuals and Businesses should take care of following 9 things before 31st March, 2021

Taxpayers should do this

File your pending income tax return for financial year 2019-2020

In case you have not yet filed your income tax return for the last financial year i.e. 2019-2020, you have the last chance to file it by 31st March 2021. But you will be liable for penalty.

Book long term capital gains on listed shares and equity mutual funds schemes upto Rs. 1 lakh.

As Section 112A long term capital gains on listed equity shares and equity oriented schemes are fully exempt upto Rs. 1 Lakh and the balance are taxed @ 10%. So you can book long term capital gains upto one lakh of rupees before march 31st March, 2021 in case not yet booked.

Linking of PAN and Aadhar

Date of linking of PAN to AADHAR was extended till 31st March, 2021 and if not yet done, it should be done now. Not linking Permanent Account Number (PAN) with Aadhaar card by the March 31 deadline may cost you. You will not only be liable to pay a fine of up to Rs 1,000 but your PAN will also become invalid. This is part of a new amendment introduced in the Finance Bill, 2021 passed by the Lok Sabha on 24th March, 2021.

Employees Should do this.

Submit Investment Proof to Employer

You should submit it immediately, the proof of investments/expenses to claim deduction under Section 80C

Make Minimum Contribution to PPF

If you have PPF or NPS account which need your attention at least once a year. Make contribution to those account, where one can avail tax benefit on contributed amount.

Check Various Tax deductions

Check your various investments to know whether you are eligible for any more deductions such as education loan where you can get deduction under U/s. 80E. Do not forget to calculate minor child income if any and the same is to get clubbed with your Income . Also, keep records of your premium payments.

Use 80C, 80D optimally

Make enough investments to make sure you have use your 80C deductions fully. Collect certificates from institutes for 80G, 80GGA, 80GGC.

Businesses Should do this.

Purchase Of Fixed Assets For Business

Businesses should purchase assets to claim depreciation (half of specified rate of depreciation). If any tangible or intangible fixed asset has been purchased for the purpose of business during the previous year and is put to use for the purpose of business or profession for the period of 180 days or more, depreciation will be allowed at the percentage prescribed for that kind of asset. If the asset has been put to use for the purpose of business or profession for the period less than 180 days in that previous year, the depreciation shall be restricted to 50% of the amount calculated at the prescribed percentage.

Clean up Loan Accounts

Verify loan accounts and cleanup them up if necessary. If an assessee has given or taken any temporary loans, hand loans and are outstanding, try to repay / recover the same on or before 31st March 2021. This will help in improving the balance sheet position of the ratio of assets and liabilities, Debt Equity Ratio etc. Temporary loans, hand loans can be again given or taken on or after 1st April 2021.

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