Tax Planning is important for every taxpayer and the same needs to be done before the end of  the year to which Income Pertains. In Addition to Tax Planning Assessee needs to Collect Relevant Supporting and Calculate His Tax Due and Pay the same. Here we have listed things which Assessee needs to do before the end of the year i.e. on or before 31st March , which are as follows :-

1. Submit to your employer the proof of investments/expenses that you have incurred to claim deduction under Section 80C. These includes receipt for insurance premium paid, deposits made in your public provident fund account, investment made in equity-linked savings schemes, National Savings Certificates purchased, children’s tuition fees paid, PPF, Tax Saving Bank Fixed Deposit, ULIP  etc. Your employer would require the details and the documentary proof to provide you the deduction under Section 80C.

2. If you are claiming deduction for house rent allowance, then ensure that you have submitted the necessary details and proofs like rent receipt, etc, to your employer for claiming the benefit.  Further if annual rent paid by the  exceeds Rs 1,00,000 per annum, it is mandatory  to report PAN of the landlord. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be taken by the Assessee for his records.

3. Collect all your bank statements and Tax Deducted at Source (TDS) certificates, if any, from your bank. This will help you to compute interest income on bank deposits and pay balance tax, if any.

4. If you have a running home loan, you must collect the certificate of repayment of principal amount and the interest paid during the financial year from the bank/financial institution from which you have taken the housing loan. You are required to provide a computation to your employer specifying the income under the head ‘House Property’ along with the proof of interest and principal repayment, to claim deduction.

5. In case you have changed employment during the financial year and not collected your Form 16, then you should collect the same now.

6. If you have made a donation to any charitable organization during the year, then ensure that you collect a valid receipt to claim deduction u/s 80G.

7. If you are claiming deduction under Section 80D for payment of health insurance premium for self and family, then ensure that you have obtained receipt for the premium paid.

8. If you are claiming deduction for interest on educational loan then ensure that you have the necessary records to substantiate your claim for deduction U/s. 80E.

9. If you have sold/transferred any asset like house property, shares, mutual funds etc. then compute the capital gains and check the exemptions available to you. A distinction is to be made between long term and short term capital gains which attracts different tax rates.

10. Compute your tax for the year and assess whether you are required to pay any balance tax. Include Income of Minor Child if the same is to get clubbed with your Income while calculating your taxable Income.

11. If you are claiming medical reimbursement from your employer then you must keep your medical bills ready for submission to your employer.

12. If you are claiming deduction U/s. 80U for disabled persons you needs to obtain a certificate from medical authority constituted by either the Central or the State Government.

13. If you are claiming Deduction u/s. 80DD for expenses on medical treatment of disabled dependent  then you must ensure that you have al medical certificate of disability of disabled dependent from any of the following :-

  •  Neurologist having a degree of Doctor of Medicine (MD) in Neurology (or, in case of children, a Pediatric Neurologist having an equivalent degree)
  • · A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital

14. Also Check if you are eligible for additional deduction under Section 80EE : Deduction for interest on loan for residential house property

These are few of the important steps that one should take care of while preparing one’s tax computation.

We request our viewers to comments what additional things one needs to do before 31st March. We will include those we considers good in our article with name of the the person who commented.

(Republished With Amendments)

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16 Comments

  1. RM says:

    payments made towards electricity, water, telephone, internet and other utility payments and interest payments on all types of loans including personal loans be permitted.

    also be permitted as deductions since payments to
    income from house property, personal assets- jewellery and land, mudgi- shops,other properties, other sources, shares dividends, interests etc and deductions utilization to full limits under sec80 and other provisions of i tax act need to be revisited to minimize tax dues particularly for assesses under higher income group covering gifts and wealth tax

    Fortunately gst like reconciliation with all sources of receipts and payments and bank statements web site is not being covered.

    Expenditure based tax at source is better than income based tax structure.

    check list format would be more helpful along with screen shots of input information requirements as per the i.tax. return format.

  2. P.P.THAPLIYAL says:

    Sir,

    Is there any need of Medical bills if we are claiming medical reimbursment from employer as from A.Y. 2019-20 there is std deduction of 40K in place of Conveyance(Rs. 19200/-)+ Medical 15000/- earlier.

  3. Rohan says:

    I have lost form 16 for the year 2008-09
    Now not able to retrieve it from my company .
    Is there any way I can get or download it from any link or source.
    Please help
    Thanks

  4. Rajan says:

    Dear Sir,

    I have subscribe this site for the daily updates via mail. But some how I am not getting mails on articles to keep my self updated.

    Please help.

  5. Avinash Kumar says:

    Dear Sir,
    with ref. to point no. 2, I wish to refer circular no. 08/2013 dated 10/10/2013, PAN of land landlord is mandatory if rent exceeds 1Lakh per annum.

    Regards,
    Avinash

  6. Ramesh says:

    hi,

    two things need to be included

    1. Reimbursements Bills for tax exemption (Medical, LTA)
    2. Employer other income (Pension, Bank interest on Deposits)

    regards,
    Ramesh G

  7. J.Janarthanan says:

    Dear Sirs,

    I would like to state that as per circular No. 08/2013 dated 10.10.2013 issue by CBDT clarify that if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the
    landlord should be filed by the employee.

    For your kind information.

    Regards.

  8. Kapil Ojha says:

    I must appreciate the efforts employed by the team in providing a very helpful article on Tax Planning and at the same time would request you to update the following in point no. 2 of the Article w.r.t. HRA exemption.

    Please note that limit of requirement of Landlord’s PAN No. is reduced to Rs.1,00,000/- for claiming the HRA exemption u/s 10(13A ) of Income Tax Act, 1961.
    Therefore, as per latest Income Tax Circular (CIRCULAR NO : 08 /2013 dated 10-10-2013), if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer to claim the HRA exemption u/s 10 (13A).

    Relevant extract of the said Circular:
    “Further if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.”

    Wish you all a very happy & prosperous Diwali.

  9. tejash says:

    Dear Moderator,

    Please correct in line no.2

    from ” needs to submit PAN of the Landlord if the Total Rent During the year exceeds Rs. 1,80,000″

    to

    “Further if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee”

    as per the new publication on 101013 i.e Circular no. 8-2013 by IT Dept.

  10. Ankit Agarwal says:

    In Point 2 it is to be noted that the PAN of the landlord is required in case the payment of rent during the year is more than Rs. 100,000 instead of Rs. 180,000. This is as per a latest circular issued by CBDT.

  11. C.P.CHUGH says:

    The Most important of all, Submit your ITR for the AY 2013-2014 before 31st March, if not submitted earlier to avoid penal action 271F.

    Requirement of quoting PAN in case of House Rent Paid is now for house rent paid Rs. 1.00 lac or above in case of employees claiming deduction for HRA. However for deducting tax at source the thresh hold limit remains the same.

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