Complete essential personal finance tasks by March 31, 2023, including linking PAN with Aadhar, tax-saving investments, advance tax payment, updated ITR filing, Form 12B submission, and more to avoid penalties and ensure financial compliance.
As the Financial Year 2022-23 comes to an end and March being the last and the most significant month of the year in terms of personal finances, some of the most important tasks are to be completed by March 31st, 2023. Failure to complete the tasks may lead to more payment of taxes, levying of penalties and others.
Here, we list out at some important tasks to be completed by 31st March,2023.
1. Linking PAN with Aadhar: The government has made it mandatory to link PAN with Aadhar and the last date to link is March 31, 2023. In case the deadline is missed, PAN cards will be declared inactive and shall be inoperative. Along with this, the government has said that from the present time to March 31, a fee of Rs. 1000 will also have to be paid to link Aadhar with PAN.
2. Tax saving Investments: For the financial year 2022-23, March is the last month to make tax saving investments in order to minimize the tax burden. Investments such as in PPF, LIC, Tax advantaged fixed deposits, life and health insurance premium, home loan interest and principal repayment, donations to eligible institutions amongst many more.
3. Advance Tax Payment: The last date to pay final instalment of advance tax payment for financial year 2022-2023 is March 15, 2023. Any tax paid after 15th March but before 31st March is also considered to be advance tax.
4. Updated ITR Filing: It is necessary to submit the updated income-tax return for FY 2019-2020 or AY 2020-21 by 31st March 2023, as it cannot be filed by taxpayers after the deadline has passed.
5. Submission of Form 12B: In case of salaried taxpayers and they have changed jobs during the year, they must provide details in Form 12B (details of the salary from the previous employer) to the new employer based on which the new employer will be able to deduct the exact TDS on their salary income.
6. Save PPF/NPS/SSY account from deactivation: In order to keep certain investments like PPF, NPS, Sukanya Samriddhi Account (SSY) active, a minimum amount needs to be deposited in the account every financial year. Failure to deposit the minimum amount in PPF, SSY, NPS will result in closure of accounts and will have to be unfreezed before making new investments. Reactivating the account may take time and you may also have to pay a fine.
7. Pradhan Mantri Vaya Vandana Yojana (PMVVY): The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is an insurance policy-cum-pension scheme. Investments up to Rs 15 lakh can be made by an individual in this scheme. The scheme provides senior citizens with regular income with currently 7.40% interest per annum. The deadline for making investments in this plan is March 31, 2023.
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