Income tax update: Complete these tax-related duties by March 31 to avoid penalties

As the financial year 2023-2024 draws to a close, it’s imperative to engage in proactive tax planning and complete various tax-related tasks ahead of time to avoid potential complications.

The Income Tax Department has set the deadline for these tasks as March 31, marking the commencement of the 2024-25 financial year on April 1. Failure to fulfill these issues before the deadline may lead to penalties.

Updating ITR Filing: The deadline for filing updated Income Tax Returns (ITR) also falls on March 31st. Failing to submit your updated ITR by this date may result in higher taxes later on.

Tax-Saving Investments: March 31st is also the deadline for completing documentation related to tax-saving investments. Taxpayers can claim deductions of up to ₹1.5 lakh by investing in eligible plans under sections 80C and 80D of the Income Tax Act.

Expense Proof Details: Taxpayers availing exemptions like House Rent Allowance (HRA) and Leave Travel Concession must submit relevant bills on time to claim deductions. Failure to do so may result in losing out on benefits, which can be claimed under section 80D.

Advance Tax: Individuals with an annual tax liability exceeding ₹10,000 post deductions of TDS/TCS and MAT are required to pay advance tax. Missing the due date for advance tax payment necessitates settling the dues by March 31st to avoid hefty interest charges.

Form 12BB: Salaried employees must submit Form 12BB by March 31st for the financial year 2023-24. This form facilitates tax benefits on investments and expenses, including details such as HRA, LTC, home loan interest payments, and other tax-related information.

PPF and NPS Account: Taxpayers investing in Public Provident Fund (PPF) and National Pension System (NPS) accounts must deposit the minimum required amount into their accounts before March 31st to prevent their accounts from becoming inactive.

Updated ECS Debit Details: Individuals who have insurance premiums, SIPs, or housing loans should verify ECS debits in their bank accounts before March 31st to ensure smooth transactions.