March isn’t just a busy month for closing the monetary accounts, but in addition an important interval for taxpayers. A number of tax obligations must be fulfilled by finish of March thirty first to keep away from delays and penalties. Every salaried particular person or firms are wanted to pay their taxes and likewise declare tax advantages. That being stated, there are 5 tax guidelines which will probably be ending on March 31, 2023.
As per Abhishek Soni, Co-founder & CEO of Tax2win, a Fisdom firm, taxpayers ought to take word that there are a number of tax guidelines which have a deadline of March 31, 2023. These are:
1. The final date for having fun with the curiosity profit on loans taken to buy an electrical car underneath Section 80 EEB is March thirty first, 2023.
Under part 80 EEB of the Income Tax, people can declare a deduction of ₹1.5 lakh on curiosity funds on their car loans availed for purchasing electrical automobiles both for private or enterprise use.
This profit on electrical automobiles is obtainable for the monetary 12 months from April 1st, 2019 until March 31, 2023.
2. Taxpayers who haven’t but filed their up to date earnings tax returns for FY 2019-20 (AY 2020-21) ought to accomplish that earlier than the deadline of March thirty first, 2023.
During the Budget 2022, the Centre launched a brand new ITR type known as ‘ITR U’ for updating earnings tax returns.
ITR-U or up to date earnings tax return is a type that allows taxpayers to file the ITR or to right errors or omissions on their ITRs as much as two years from the top of the related evaluation 12 months to replace their return. A taxpayer may file just one up to date return for every evaluation 12 months(AY).
3. Deadline to hyperlink PAN and Aadhaar is March 31, 2023. After this date, the PAN will turn out to be inoperative.
The part 139AA of the Income Tax Act supplies that each particular person who has been allotted a Permanent Account Number (PAN) as of the first day of July 2017, and who’s eligible to acquire an Aadhaar quantity, shall intimate Aadhaar quantity within the prescribed type and method. That being stated, such individuals need to mandatorily hyperlink their Aadhaar and PAN earlier than the scheduled deadline.
The deadline for Aadhaar – PAN linking has been prolonged on many events and the most recent can be March thirty first, 2023. For those that fail to hyperlink, their PAN will turn out to be inoperative from April 1 of this 12 months.
4. Deadline for paying advance tax for FY 2022-23, is March thirty first, 2023. From April 1, 2023, onwards, taxpayers who haven’t paid their advance tax will probably be required to pay curiosity underneath part 234B.
The Income Tax division levies several types of pursuits are levied for varied sorts of delays/defaults.
Under part 234B, curiosity is levied for default in fee of advance tax. Generally, the curiosity for default can be 1% per 30 days or a part of a month. The nature of curiosity is straightforward curiosity. In different phrases, the taxpayer is liable to pay easy curiosity at 1% per 30 days or a part of a month for default in fee of advance tax.
Taxpayers are required to pay advance tax throughout a monetary 12 months if the estimated tax legal responsibility of the assessee throughout that 12 months is ₹10,000 or extra.
5. Deadline for tax-saving investments for FY 2022-23 can also be March thirty first, 2023. It is advisable to take a position on the earliest to avail of the accessible tax-saving deductions
Taxpayers who’ve opted for the previous tax regime are required to finish their tax-saving investments earlier than March 31, 2023, for the present monetary 12 months. This is as a result of any investments after FY23 won’t be accessible for claiming deductions within the older tax guidelines when ITR submitting.
Lastly, Soni stated, “taxpayers must also be aware of the various tax rules with a deadline of March 31, 2023, and take necessary action before it is too late. Tax2win’s ‘Income tax calculator’ can assist taxpayers in determining which income tax regime is better for them in FY 2023-24.”
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