March 31st is less than a week away. As far as income tax laws in India are concerned, the month of March is very important. You are expected to comply with the income tax deadlines, much before the due date.
What happens if you ignore these deadlines? Well, you might have to pay additional taxes if you fail to comply with the deadlines.
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Let’s say you are a salaried employee, and your entire tax liability is taken care of by your boss, through TDS (Tax Deducted at Source). You are lucky and can afford to relax.
But, what happens if you have additional income and you have to pay tax on it? What if after the TDS deduction, your tax liability is Rs 10,000 or more?
Then, you will have to pay advance tax in 4 instalments. The last instalment would be due on March 15th.
If you have missed paying the last instalment or any of the previous instalments, make sure to do so before March 31st. Failure to do so might mean paying interest.
SEE ALSO: 5 Important Income Tax Changes
The maximum deduction is Rs 1.5 Lakhs a year, under this Section. You also enjoy a deduction under Section 80D, up to Rs 25,000 a year, on the premium paid for a health insurance plan. This amount can go up to Rs 30,000 a year, if you are a senior citizen.
You must make these investments, ideally before March 31st,so that you have the time to furnish proof of these investments, to your employer and enjoy the tax deduction.
You can even claim income tax deductions under the Section 80C and Section 80D, at the time of filing ITR, even if you have not submitted investment proofs to your employer. Just make sure you have made your investments before March 31st.
If you were supposed to file ITR for FY 2015-16 and FY 2016-17, and you have missed the respective deadlines of 31st July 2016 or 31st July 2017, you have to file ITR before 31st March 2018. This is called a belated return.
Filing a belated IT return, is your last chance to claim an income tax refund. What if you have a taxable income? Then, make sure to file belated ITR before March 31st 2018. Not doing so could mean an income tax notice.
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If there has been an error or an omission in ITR filed for FY 2015-16, then March 31st 2018, is your last opportunity to file the revised ITR, to carry out any corrections. Be Wise, Get Rich.
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