If one has missed that deadline, the belated tax return can still be filed by 31 March, 2020. Note that, you will have to pay the late filing penalty for the belated tax return.
The financial year is coming to an end soon, and there are various tasks that need to be completed before the year-end. From filing income tax returns to investing for tax savings, and even booking profits in equity MFs and stocks, there are certain tasks that most need to get done before the 31st of March, 2020.
Here is a list of things that one must take care of before March ends:
File belated tax return – Late tax returns can’t be filed after 31 March 2020. Originally, for the financial year 2018-19, taxpayers had to file their tax returns by 31 July 2019.
If one has missed that deadline, the belated tax return can still be filed by 31 March, 2020. Note that, you will have to pay the late filing penalty for the belated tax return. The penalty can be around Rs 1,000, for taxpayers with income below Rs 5 lakh, which will go up to Rs 10,000 for taxpayers with income above Rs 5 lakh.
Investments in small savings schemes – Investors looking to invest in fixed income options can look at National Savings Certificates (NSC) and Kisan Vikas Patras, offering 7.9 per cent and 7.6 per cent return, respectively. However, this might not be for very long as experts suggest the interest rates of small savings schemes may be cut from 1 April. Hence, investors planning to purchase NSCs and KVPs will not be affected by the change if bought before 31 March.
Pradhan Mantri Vaya Vandana Yojana – The last date for this scheme is 31 March, and has not been extended. The Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme is for 10 years and gives assured returns to senior citizens, unlike other annuity schemes that offer a pension for life. In case the pensioner survives till the end of the policy term, the principal investment will be returned to him/her. The amount will be given to the nominee if he/she dies during the term.
Even though the scheme does not offer tax deduction under Section 80C as well the pension received is also taxable, it is exempted from GST applicable on amounts invested in annuities.
Buy Term insurance cover – Industry experts are suggesting, it is the right time to buy term insurance plans as premiums may be revised due to hike in reinsurance rates.
Premiums could rise up by 20 per cent from 1st April due to a revision in reinsurance rates. Term plans are quite cheap. Hence, you can get the best form of life insurance and a high cover for a low price, if bought before 31st of March.
Link your PAN with Aadhaar – Now the deadline to link your PAN card with Aadhaar is March 31, 2020. Individuals whose PAN is not linked with Aadhaar by 31st March, might have to pay a penalty of Rs 10,000. Additionally, know that your PAN might also become inoperative by the end of this month, if not linked with Aadhaar. So, better do it now.
You can link your PAN with your Aadhaar online by visiting the income tax website – incometaxindiafiling.gov.in. To link your PAN with your Aadhaar via text message/SMS, just send your 12-digit-Aadhaar number and your 10-digit PAN number to the income tax department.