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 :-
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)