Six major tasks you must complete before the financial year ends

As the financial year ends in a week, ensure that you have completed all-important work related to tax planning by March 31. Otherwise, you will miss out on the savings made by adopting all the tax-saving methods on time. Here are the six essential tasks that you must complete before the financial year ends:

Submit proof of all deductible expenses to the employer

Some discounts are available to employees only on expenses. Proof of this also must be given to know that he has spent. For example, House Rent Allowance (HRA) or Leave Travel Concession (LTA). If you have not submitted bills for such expenses until now, do so before March 31.

Check whether the required Electronic Clearance Service (ECS) has been debited from the bank account

Insurance premiums, regular investments under Systematic Investment Plans (SIPs) Housing loan instalments etc., are usually debited from the bank account through ECS. However, it is possible that due to some technical reason, the ECS can't be debited, or the check may have bounced. In both cases, the taxpayer will not be able to claim the said expenditure/investment. Therefore, such transactions must take place.

Give the details of the salary received from the old employer to the new employer

If you changed the job after March 31 last year, then through Form-12B, give full details of the salary and allowances from the old employer to the new employer. Otherwise, both old and new employers may give you an Income Tax Basic Exemption Limit exemption, i.e. Rs 2.50 lakh. You pay tax and interest while filing the return in such a situation.

Advance Tax Payment

If the tax liability after TDS exceeds Rs 10,000, the advance tax must be deposited. The advance tax has to be paid in four instalments. 15% of the total liability has to be deposited by June 15, 45% by September 15, 75% by December 15 and 100% by March 15. You should check that all these advance tax instalments have been deposited on time.

Last Chance of Tax Deduction

Salary based exemption is available under Section 80C Life Insurance Corporation of India, 80CCD(2) National Pension Scheme, and 80-D Mediclaim. If you have not invested up to the maximum limit, you can invest the remaining until March 31.

Buying property, car, computer etc for a business

If you want to buy property, computer, car etc., for business, buy it by March 31. According to the rules, if the property is purchased even on the last day of the financial year, depreciation exemption can be taken at half of the prescribed depreciation rate. If you haven't done it yet, then definitely do this work by March 31:

Reconcile Books Data Match with GST Portal
File pending income tax return for 2020-21.
Bank Accounts/Credit Card Accounts
Deposit minimum amount in PPF, NPS accounts, else they will become inactive
Get KYC updated for your bank Account

Six major tasks you must complete before the financial year ends

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