Compliances to adhere before the end of the FY

Income Tax
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With the financial year coming to an end on 31 March, it is important to make sure all compliances are done in order to avoid any penalties and hence be a tax-compliant citizen of the country.

Going by the famous doctrine of ‘Ignorance of the law is never an excuse,’ it is your duty as a taxpayer to educate yourself on all tax obligations that you need to fulfill.

Let’s discuss a few compliances for individuals before you fall into any trap!

  1. When the obligation to pay advance tax has risen, ensure the payment is made till the last installment on 15 March in order to avoid interest penalty.
  2. If you fail to file an ITR on or before the due date, make sure you file an Updated Return (ITR U) to be tax compliant.
  3. Tax Loss Harvesting: If you have any loss-making stocks, you can plan your taxes with the help of Tax Loss Harvesting technique.
  4. You can optimize tax liability by making certain tax-saving investments such as PPF, LIC Premium, ULIP, NPS, Donations, ELSS, etc
  5. File an ITR on or before the due date of 31 July of the year immediately following the relevant financial year
    1. Report all the incomes and avail all the deductions you can.
    2. Opt for the most beneficial regime for you
    3. Compare the tax liability under the regular scheme and presumptive scheme
  6. File an ITR on or before the due date of 31 October of the year immediately following the relevant financial year, if you are covered under tax audit.
  7. Gather all the other important documents required for filing the return accurately.
    1. Form 16/ Salary slip: Essential for salaried people
    2. Form 26AS: For TDS & TCS transactions
    3. AIS: This is an extension of Form 26AS which also shows the details of the taxes paid (including advance tax) in the financial year and has some other information like savings account interest, dividend, rent received, purchase and sale transactions of securities/immovable properties, foreign remittances, interest on deposits, GST turnover, etc.
    4. Are you an investor in the stock market? Make sure you have a capital gains statement/tax P/L from your broker to be able to calculate gains/losses.