Finances are always a top priority for most of us and by following some strict disciplines, stress-free management of assets can be achieved. One of the best ways to manage assets is to keep track of the financial deadlines and take necessary actions before the due date.
Here are a few financial deadlines that you need to meet to ensure you have smooth financial planning.
1. Tax-Saving Investment
Most people make investments to save some taxes on their income. So, if you are planning to make any investments then remember to do it before 31st March 2020. Before that, make sure to plan your investments and tax-saving scheme well in advance.
By carefully planning your investments, you can save Rs. 46,800 (including cess) is you are under the 30% slab of tax rate under section 80C. Under this section, you can make investments of up to Rs. 1.5 lakhs.
2. File revised ITR and delayed ITR
If you are yet to file your Income Tax Return for the financial year 2018-19, then you have to file the delayed ITR ((income tax return) or revised ITR revised ITR by 31st March 2020. In case you miss this deadline, you will lose your right to file ITR for the year 2018-19. Additionally, you will be levied a fine of Rs.10,000 for filing a delayed ITR. Also, if you want to make any changes in your filed ITR for the financial year 2018-19, you will have to do so on or before 31st March 2020. Do remember that you will not be able to file your revised ITR after the deadline.
3. Submission of investment proof to your employer
Yes, submitting your investment proof to your employer is important. The proof will help your employer access the TDS deduction for you and also avoid any extra tax that may get deducted due to over calculations.
The deadline to submit your investment proof varies with different companies. Therefore, it is important to check with the HR of your company and submit your investment proof accordingly.
4. Pradhan Mantri Awas Yojana (PMAY)
You can claim your benefits until 31st March 2020 if you have availed a home loan under the Pradhan Mantri Awas Yojana(PMAY) scheme. This scheme helps people from the middle-income group to avail of the credit subsidy on buying a home under the terms and conditions of the PMAY.
The benefits are divided into two categories- MIG-I and MIG-II and are subject to the annual income. A family having an annual income between Rs.6 lakhs to Rs.12 lakhs is categorized as MIG-1 and can avail a 4% subsidy. A family that has an annual income between Rs.12 lakhs and Rs.18 lakhs is categorized as MIG-II and can avail a 3% subsidy.
5. Pradhan Mantri Vaya Vandana Yojana (PMVVY)
This is essentially a pension scheme and is only for senior citizens. Pradhan Mantri Vaya Yojana is a great option to make an investment in a falling market. It provides a guaranteed payout of pension for 10 years at the given rate of interest or return.
The rate of interest can vary between 8% and 8.3% depending on the mode of investment. Interestingly, the return rate is higher than the bank deposits or post office fixed deposits.
The scheme is open till the 31st of March and has a ceiling of Rs. 15 lakhs. Senior citizens looking for better-returning schemes can consider this as an option.
6. Depositing TDS on rent
If you live in rented accommodation and have to pay a rent of more than Rs.50,000 per month, then you must pay rent after deducting tax on the source according to the Income Tax Act. The tenant will have to deduct taxes at a rate of 5% once every financial year. The deduction can be done when the tenant leaves the house or before 31st March (whichever is earlier).
The deducted TDS needs to be deposited with the government within 30 days from the month it was deducted. A penalty and interest will be levied if you do not submit the TDS in time.
7. Deadline to file ITR for the financial year 2019-20
Once you have completed all your tax-saving investments and ITR filing for the previous year, you must focus filing of ITR for the financial year-2019-20. The deadline for this is July 31st. Failing the deadline, you will have to file a late ITR by 31st December 2020 with a penalty of Rs. 5000. If you miss this, you will have to file a delayed ITR by 31st March 2021.
Consult a financial advisor near you and invest in a scheme that suits your requirements. However, make sure to file your returns on time to avoid any unnecessary penalty.