Penalties possible on not finishing these PPF, NPS, tax-related duties by 31 March

As the tip of the monetary yr 2021 is approaching, it is vital that you simply take inventory of a number of the monetary duties that should be accomplished earlier than the date expires. if you happen to fail to carry out these duties earlier than due date, you’ll have to pay penalities. Lets perceive the penalties that you simply may need to pay if you happen to don’t carry out these duties by 31 March.

Minimum funding in PPF: You are required to make a minimal funding of Rs500 in your PPF (Public Provident Fund) account each monetary yr to maintain the account energetic. If you aren’t capable of make investments the sum your account will turn out to be inactive. A penalty of Rs50 will likely be levied yearly for the variety of years of default. The account will turn out to be energetic after you pay the penalty and deposit the minimal quantity required.

Minimum funding in NPS: A minimal contribution of Rs500 needs to be made within the NPS (National Pension System) Tier 1 account whereas the minimal funding requirement in Tier 2 account is Rs250. The account turns into inactive in case the minimal contribution will not be made. To reactivate the account, one is required to pay the minimal contribution of Rs500. To unfreeze an account, the subscriber has to strategy the purpose of presence (POP) and pay the required quantity, or he/she will make a contribution by eNPS platform.

Post workplace RD: In case of put up workplace recurring deposit (RD), the month-to-month contribution needs to be deposited earlier than the fifteenth day of the month for accounts opened between the primary and the fifteenth day of the month and people opened on the sixteenth day and later ought to deposit the quantity by the final day of the month. If the quantity will not be credited in any month, it turns into default. In case of default, Rs100 needs to be deposited for each month of default and minimal 4 defaults are allowed. So, if in case you have not deposited your RD installment for the month of March, do it now.

Belated return submitting: In case you haven’t filed your earnings tax return for the FY20, 31 March is the final date for submitting it. You might want to pay a penalty of ₹10,000 if you happen to file your ITR until 31 March 2021. It will likely be tough to file an ITR after this date. For non-filing of your ITR, the tax division can levy penalty a minimal penalty equal to 50% of the tax which might have been prevented by you, along with the legal responsibility to pay the curiosity until the date you in the end file your ITR after receiving notices from tax division.

Moreover, the earnings tax division can launch prosecution towards you for non-filing of ITR.

Vivad se Vishwas scheme: 31 March is the final date for making declaration below the scheme. Under the scheme, the taxpayer is granted immunity from levy of curiosity, penalty and establishment of any continuing for prosecution for any offence below the Income Tax Act in respect of issues lined within the declaration. In case you do not make use of the chance, it’s possible you’ll get tax division discover and face penalties.

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