As we are approaching the end of the financial year 2021-22, there are some tasks that need to done before 31st March 2022. Let us discuss them.
1. Submitting the details of salaries received from earlier employer
If you are a salaried person and were employed with more than one employer in the current year, it is time to provide the details of your salaries from the previous employer/s in Form No. 12BB, to your current employer immediately so as to ensure proper tax deductions on your aggregate salary earning.
2. Submit the proof of expenses to your employer
There are certain exemptions that are available to employees on expenses actually incurred. For items like House Rent Allowance (HRA) and Leave Travel Assistance (LTA) unless you submit the necessary documents, the employer will treat these allowances as taxable and deduct tax thereon. If you fail to submit the documents, you can still claim these items as exempt and claim the refund for the excess tax while filing your ITR.
3. Verify quantum of deductions available from your bank records
One needs to verify the details from the bank statement and cross check that all the eligible deductions factored into by the amounts have been debited in the bank account. In case some items have not been debited, please ensure that either the payment is made for the same or investments are made in an alternate product available before the year-end.
4. Payment of advance tax
Advance tax must be paid in four instalments in the ratio of 15%, 30%, 30% and 25%, but in case you miss all the four instalments, at least pay the same by 31st March. Failure to pay adequate advance tax attracts punitive interest.
Even if you are salaried and tax has been deducted from your salary, you still have to pay advance tax on any other income like rent, interest, dividend, capital gains etc. For self-employed where the tax deducted is not sufficient to cover the aggregate tax.
5. Minimum contribution to PPF account
In case you have a PPF account either in your own name or in the name of children or spouse, you have to contribute minimum of Rs 500 every year in each account to avoid the account becoming dormant. A dormant account can be made active by payment of a nominal amount and contribution of Rs 500 for each year of default.
6. File your pending income tax return for the last financial year
In case you have not yet filed your income tax return for the last financial year, you have the last chance to file it by 31st March 2022, that too with late fees.
7. Book long-term capital gains on listed shares and equity mutual funds schemes up to Rs 1 lakh
Section 112A long-term capital gains on listed equity shares and equity-oriented schemes are fully exempt up to Rs 1 lakh and the balance is taxed @10%. So you can book long-term capital gains up to one lakh of rupees before march 31st March, in case not yet booked. In case you have made these investments for the long term, you may decide to sell the shares the same day and buy By this strategy, you can minimise your overall tax liability.
Views are personal: The author Pankaj Ladha is a Mutual Fund Distributor from Kota
Disclaimer: The views expressed are of the author and are personal. TAMPL may or may not subscribe to the same. The views expressed in this article are in no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and Tata Asset Management Pvt. Ltd. will not be liable in any manner for the consequences of such action taken by you.
Used here for educational purposes of Students
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