The government has set a deadline of March 31, 2023, for five major financial tasks which are very essential to be completed. The consequences of failing to complete these tasks are much greater than you can expect. For instance, if you are not able to link your PAN and Aadhaar before March ends then your PAN Card will become inoperative. You will not be able to file new, revised or belated ITR. And there are four other major processes like this one to complete. So, let’s discuss all five below.
Here’s the List of 5 Major Financial Tasks to Complete Before March 31, 2023:
1. PAN-Aadhaar Linking
The government has extended the PAN-Aadhaar linking deadline several times. But now, with no further extension, the last date to link both these essential documents is March 31, 2023, as ruled by the Income Tax Department. But if you fail to link them then “As per the Income Tax Department, one’s PAN card would become inoperative from 1st April 2023, if it is not attached with one’s Aadhaar card. PAN-Aadhaar linking is free till 31st March 2023 while from 1st April 2023, it would incur PAN-Aadhaar link fee of ₹1,000.”
2. Submitting Updated ITR or ITR-U
ITR-U or Updated income tax return is filed within 2 years of the original assessment year. So for FY 2019-20 or AY 2020-21 the last date to file an Updated ITR is March 31, 2023. Note that you will not be able to file ITR-U beyond this date. The consequences will be notified by the Income Tax Department in that case.
3. Advance Tax Payment
As notified by the Income Tax Department, one of the five major financial tasks to complete is Advance Tax Payment. So according to the notification, “the last instalment of advance tax for FY23 must be submitted by 15th March 2023. According to the Income-Tax Act, a person must pay advance tax if their projected tax liability is ₹10,000 or more after Tax Deducted at Source (TDS) deductions.”
4. Investments to Save Tax
With the end of this financial year, means after March 31, 2023, an individual whose basic income exceeds the income tax slab will have to consider investing in government tax saving schemes like PPF, ELSS Mutual Fund, tax saving bank FD, etc.
Also read:
Top Investment Options for Women in 2023
5. Insurance to Save Tax
“Tax and investment experts always suggest an earning individual take life insurance other than investment options because it is done for your dependents when you are not present to take care of your family members. So, life insurance should be treated differently than an investment option. However, insurance does help an earning individual to claim an income tax rebate. However, as per the new income tax rule getting implemented from 1st April 2023, proceeds from life insurance policies over the annual premium of ₹5 lahks would be taxable. But, if you buy an insurance policy with over ₹5 lahks annual premium before or on 31st March 2023 would not fall under the new income tax rule,” explained livemint.
