Final minute examine earlier than March 31, 2022 deadline

Evaluating Tax Saving Funding Choices

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In type of FY 2021-22 Nearing completion, taxpayers have the final likelihood to evaluation whether or not they have made use of all obtainable tax optimization alternatives earlier than March 31, 2022. Suresh Surana, Founder-RSM India tells us about some last-minute checks that taxpayers can do to make sure that all tax-saving choices have been correctly utilized by them.

Evaluating Tax Saving Funding Choices

Part 80C of the Earnings Tax Act, 1961 (hereinafter known as the ‘IT Act’) is likely one of the most sought-after sections by taxpayers for claiming tax deduction regarding investments. The provisions of part 80C enable numerous investments to be claimed as deduction as much as Rs. 150,000 from a taxpayer’s gross whole revenue, in the end leading to decreasing the entire tax legal responsibility. A few of the eligible investments eligible for deduction below part 80C embody fee of life insurance coverage premium, Public Provident Fund (PPF), ELSS, Sukanya Samriddhi Yojana, membership in Nationwide Financial savings Certificates, principal fee of housing mortgage, registration/stamp responsibility . on property and so forth.

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Aside from the above-mentioned investments, expenditure within the type of tuition charges paid in India, reimbursement of principal on residence mortgage, and so forth., are additionally eligible for deduction below part 80C. Nonetheless, it’s pertinent to notice that, the utmost deduction that an assessee can declare below this part is restricted to Rs. 1,50,000.

Taxpayers can consider different funding choices resembling contribution to the Nationwide Pension Scheme for which deduction is obtainable as much as Rs. 50,000 below part 80CCD.

Medical bills (medical examination and hospitalization) below part 80D as much as Rs. 25,000 for self and partner and youngsters. Extra deduction as much as Rs. 25,000 on the mediclaim of the mother and father. If the mother and father are senior residents then the deduction will probably be obtainable as much as Rs. 50,000

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Submission of funding proof to employers

Employers are answerable for withholding tax below part 192 of the IT Act on salaries of workers and for computing such tax, employers have in mind the funding declaration and proof submitted by the workers. Such funding proof could embody fare receipts, curiosity certificates, vacation journey bills, and so forth.

Thus, all workers ought to make the specified tax-saving funding, match the funding proofs and submit it to their employer as quickly as attainable to keep away from excessive deduction of tax at supply. This may also keep away from pointless blockage of funds as

TDS, which will be deducted by the employer, if the worker doesn’t submit the paperwork associated to the funding.

Aadhar PAN linkage will probably be performed by thirty first March 2022

All resident taxpayers who haven’t but linked their PAN and Aadhaar should compulsorily hyperlink it earlier than 31 March 2022. Failure to adjust to this may increasingly entice a tremendous of as much as Rs. 1000 u/s 234H of the IT Act. Additional, non-linking can deactivate PAN which can not solely hamper monetary transactions linked to PAN however may lead to a tremendous of Rs. 10,000 u/s 272A of the IT Act.

Submission of late or amended return on or earlier than thirty first March 2022

As per the provisions of part 139(4) (for belated returns) and 139(5) (for amended returns) of the IT Act, a taxpayer can file both delayed/amended return 3 months earlier than the top of the related interval. Earlier than the completion of evaluation 12 months or evaluation, whichever is earlier.

Nonetheless, within the monetary 12 months 2020-21 as per Evaluation Yr 2021-22, the final date for submitting delayed/corrected returns has been prolonged from thirty first December 2021 to thirty first March 2022 vide 2021 round no.17 dated ninth September 2021. Epidemic scenario within the nation. Non-filing of returns could entice a penalty of Rs. 1,000 for taxpayers having whole revenue of lower than Rs. 5 lakh whereas rising such tremendous to Rs. 5,000 in different circumstances. Thus, it’s essential for each taxpayer to file his tax returns or revise the already filed returns, if required, earlier than thirty first March 2022.

advance tax fee

All taxpayers having tax legal responsibility of Rs. 10,000 or extra are liable to pay advance tax. Nonetheless, such advance tax legal responsibility isn’t levied on resident senior residents who don’t obtain any revenue from enterprise or occupation. The taxpayer has to evaluate the revenue from numerous sources and pay advance tax on the identical accordingly.

Taxpayers are liable to pay the total quantity of advance tax by 15 March 2022 for the monetary 12 months 2021-22. Failure to pay advance tax throughout the stipulated time will lead to curiosity to the taxpayers.

Long run capital achieve on sale of listed shares/securities as much as Rs. 100,000

Taxpayers are eligible to assert exemption as much as Rs. 1 lakh on long-term capital positive aspects below part 112A of the IT Act on listed fairness shares, items of equity-oriented mutual funds, and so forth. Thus, taxpayers might have to contemplate this reality in the event that they suggest to e book long-term capital positive aspects so as to declare this exemption.

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