March 31, 2023, marks the end of the current financial year and is also the deadline for several financial actions including linking of PAN with Aadhaar, filing of updated Income Tax Return (ITR) and paying advance tax. If these deadlines are missed then taxpayers may have to face penalty. Here are five financial tasks that need to be completed by March 31.
The central government has directed that Permanent Account Number (PAN) must be linked with Aadhaar before March 31, and failure to do so will attract a fine of ₹1,000. The Income Tax Department has advised that if the deadline is not met, the PAN will be treated as ‘inoperative’ from April 1.
Taxpayers have time till March 31 to file revised income tax returns for the financial year 2019-2020, also known as assessment year 2020-21. After the deadline, it will not be possible to file the return.
According to the IT department, taxpayers will have to deposit the last installment of advance tax payment for the financial year 2022-2023 by March 15, 2023. If a taxpayer fails to make advance tax payment, they will be subject to penalty. The Income Tax Act mandates that individuals having an estimated tax liability of ₹10,000 or more after deduction of Tax Deducted at Source (TDS) must pay advance tax.
For the financial year 2022-23, taxpayers who have opted for the old tax regime will have to complete their tax-saving investments before March 31, 2023. In the old tax regime, taxpayers were allowed to deduct various expenses related to their investments.
Lastly, the Pradhan Mantri Vaya Vandana Yojana (PMVVY) is an insurance policy-cum-pension scheme that provides regular income to senior citizens. Up to Rs 15 lakh can be invested by an individual in the scheme. The deadline to invest in this scheme is March 31, 2023.
frequently Asked question:
1. What is the time limit for linking PAN with Aadhaar?
As per the guidance of the Income Tax Department, taxpayers will have to link their PAN with Aadhaar before March 31, 2023. If they fail to do so, they can link them by paying a fine of ₹1,000. However, if the deadline is missed, the PAN will be treated as ‘inoperative’ from April 1.
2. What is Pradhan Mantri Vaya Vandana Yojana (PMVVY) and how much one can invest in this scheme?
PMVVY is an insurance policy-cum-pension scheme that provides regular income to senior citizens. Up to Rs 15 lakh can be invested by an individual in the scheme. The deadline to invest in this scheme is March 31, 2023.