In India, the Financial Year (F.Y.) runs from 1st April to 31st March. We have to perform certain important tasks before the end of the F.Y. to plan our present and future. Although we have a full year to complete these tasks in advance but we Indians are adventure loving people and we wait for the due dates to come near so that we can complete our pending chores.
It is said that “Indians work on the principle of Rocket Science, means they start the work only when their tail is set on fire”.
Here is a similar story of Mr. India, who is having a conversation with Mr. Taarikh.
Character 1: Mr. Taarikh (31.03.2020)
Character 2: Mr. India
Taarikh: Hey Mr. India, do you know my importance in your life?
India: What importance? You are just like another day!
Taarikh: Hahahahaaaaa….Don’t be a fool. Ignoring me can land you in a pool of troubles for your whole life.
India: Seriously? Just tell me about your importance!
Taarikh: Ok. You have to give the answers to my questions and you will understand my importance.
So tell me, have you filed your Income Tax Return for F.Y. 2018-19?
India: Not yet. But will file it someday.
Taarikh: My dear buddy, you can file it till the time I am with you. Once I expire, you can’t file it. So, please file your ITR till the time I am alive.
(The Belated Income Tax Return for F.Y. 2018-19 can be filed only up to 31.03.2020. Also, if the ITR was filed earlier but later on, you discover any omission or any wrong statement in the return of income than the Revised ITR can also be filed only up to 31.03.2020)
India: Ok. Next question, please.
Taarikh: Mr. India, as far as I know, you live in rented accommodation and that too in a posh colony. The monthly rental there is more than ₹ 50,000/-. Correct me if I am wrong.
India: To my surprise, you are right Mr. Taarikh.
Taarikh: Yo! So, here you owe a liability to deduct TDS @ 5% on Total Rent Paid for the whole year and that also before I expire.
(The tenant is liable to deduct TDS on, total rent paid during the year, if the monthly rental is more than ₹ 50,000/-. This TDS is to be deducted before 31.03.2020 and is to be deposited with the government within 30 days from the end of the month in which deduction was made.)
India: Mr. Taarikh, you are giving me Goosebumps.
Taarikh: Hahahaaa…The movie is not over yet Mr. India.
Come on tell me, have you deposited any Advance Tax for the F.Y. 2019-20?
India: Advance Tax? What’s this and why would I deposit it?
Taarikh: Oh Lord! Help him.
Ok, listen. If your Tax Liability for the year exceeds ₹ 10,000/- then you are required to deposit the Advance Tax with the government. This is to be deposited in four instalments during the F.Y. As you have not deposited yet, you may take my advantage and deposit it before my expiry.
(If the tax liability in a F.Y. exceeds ₹ 10,000/- then Advance Tax is to be mandatorily deposited in four installments. Any tax paid on or before 31st March is also treated as an Advance Tax)
India: Ok. Will deposit it.
Taarikh: That’s like a good boy.
Now tell me, have you done any planning? No, not family planning. I am talking about Tax Planning. Have you done any investments for saving taxes?
India: Yeah, of course. I know about the investments and I had invested in Public Provident Fund (PPF) and Fixed Deposits (FDs). Clever me.
Taarikh: Oh that’s great. But let me tell you here that there are other options too like Mutual Funds (MFs), National Pension Scheme (NPS), Health Insurance etc. You may invest in these till the time I am with you and you can save your taxes for F.Y. 2019-20.
See, how fortunate you are for having me!
(If one wants to save taxes, he/she must invest in modes like PPF, MFs, FDs etc. up to a limit of ₹ 1,50,000/-. For further deduction of ₹ 50,000/-, you may invest in NPS. Also, there is a deduction of the premium amount paid for Health Insurance of self and family.)
India: Yes Mr. Taarikh, I am realising your importance in my life. Please tell me if I am still missing anything?
Taarikh: One more task to be done till the time I am with you is linking your PAN and Aadhaar Card. Our government had given us much time relaxation in completing this task. So, Mr. India, please link your PAN and Aadhaar Card too before my expiry.
(The PAN-Aadhaar linking is mandatory and is to be done before 31.03.2020. The status of the same can be checked at the e-filing website of the Income Tax Department.)
India: Thank you so much Mr. Taarikh for enlightening me. I will complete all the tasks and that too before your expiry.
So, these are the important tasks to be completed before the expiry of Mr. Taarikh. If you also have any pending tasks please hurry up and get them completed before Mr. Taarikh expires i.e. 31st March 2020.
(This blog is authored by Sarvam Gupta, Co-Founder & CEO, Coherent Advisors)
Disclaimer: The information contained in this article is intended solely to provide general guidance on matters of interest for the personal use of the reader. Before making any decision or taking any action, the reader should always consult a professional advisor relating to the relevant article posting.