As we enter the last two months of the financial year, closing on March 31, it is very important to go competently over important financial tasks: that is, ensuring that punishment was avoided, rather than taking a legal recourse, while helping to make a smooth transition into the subsequent financial year. The following essential mandates/ tasks should be top of your 2021-2022 finance-year list:
1. File Income Tax Return (ITR)
If you couldn’t meet the deadline to pay the income tax for the fiscal year gone by, then March 31 is the last date for submission of the belated returns. A failure on this would lead to penalties and, in all probability, legal actions. Keep all documents in best physical state, including Form 16, salary slips, various investment proofs, etc., to be all faithfully put together for a first-class FIR.
2. Link Your PAN With Aadhaar
It is mandatory by the government that your Permanent Account Number and Aadhaar number be linked up through Aadhaar to verify financial transactions. The last aforementioned chance to link the PAN number and Aadhaar figure together lies before March 31. If one does not comply with this directive, his/her PAN will be deactivated resulting therefrom in hindrance to any sort of transaction with the administration.
3. Make Tax Saving Investments
For those trying to maximize on Section 80C tax rebates under the Income Tax Act, they need to invest in approved schemes that may include Public Provident Fund (PPF), Equity Linked Saving Scheme (ELSS), or National Saving Certificate (NSC) to name but a few. All such contributions made before 31st March can impact the taxable income to your exempted level.
4. Review And Update Your Financial Portfolio
End-of-financial-year opportunities offer the opportunity to evaluate your assets and ensure they are synchronized with your monetary objectives. If necessary, renew your portfolio to maintain efficiency. Examine the progress in mutual funds, stocks, or any other form of investment, reflecting on what will secure your decisions.
5. Have A Full Clearance Before The End Of The Financial Year
Make certain that, as the financial year closes, all dues, including credit cards, loan EMIs, utility bills, are sorted out. Timely payments always eliminate penalties and improve your credit score, leading to an impeccable financial record.
Summing up
By getting a head start on these chores before March 31, one gets assured of less tax liability, compliance, and better financial discipline. Always remember to have a to-do list and a timely reminder so that the done job may not stand fast for awhile, waiting for a financial expert to guide you with suggestions modified to your needs.
Be organized, act quickly, and face the new financial year confidently!
Also Read: 8th Pay Commission Update: Central Employees To Get Salary Hike, Higher DA And Pension Benefits