With the current financial year approaching its end come March 31, most taxpayers are likely to be rushing to make tax-saving investments and arrangements in order to cut down on taxable income during the period.
While a hectic rush for tax-saving instruments is a usual occurrence during the last month of the financial year, this is by no means the only tax-related measure that needs to be taken.
A host of important deadlines are also running out during this month, failure to comply with which will likely lead to the imposition of stringent penalties.
Filing Advance Tax
Any individual who has an estimated tax liability of more than Rs 10,000 per year is eligible to pay advance tax unless one is a senior citizen that does not have any professional income.
Advance tax is meant to be paid in four quarterly installments during the year and the deadline to pay the last quarterly installment is on March 15. This includes individuals who are covered under the presumptive taxation scheme under sections 44AD and 44ADA.
In case the individual fails to pay the tax before the deadline, an interest of 1 percent per month for a deferred installment and 1 percent interest per month in case only 90 percent of the payable amount is deposited before the end of the financial year.
Belated and revised returns
March 31 is also the last date for taxpayers to file both belated and delayed returns for FY20. Belated returns are any I-T returns filed after the last date. Revised returns, meanwhile, are filed by taxpayers in case a change needs to be made in the earlier IT return filed.
The Centre has mandated that March 31, 2021, is the last date for the linking of PAN with Aadhaar. If the Aadhaar linkage is not done by that date, the PAN card may become inoperative.
Vivad Se Vishwas
The Vivad Se Vishwas scheme, which was rolled out to reduce pending tax litigation, allows taxpayers to settle disputes without having to pay any interest. The last date for declarations under this scheme has been set as March 31, 2021.
As per a CBDT’s notification, the date for payment of tax without additional interest under VSV remains unchanged at 30 April 2021.