Warm Greeting To Our Readers!
Financial Year 2021-22, is on the verge of completion. Taxpayers around the country are busy accessing their financial statements and finding all the possible financial ways through which they can avail of tax optimization opportunities before 31st March 2022.
To date, many would have done the process, and now might be revising the whole scenario. Well, here we are for your last-minute revision tips!
Through this article, we are discussing the Last Minute Checks That Taxpayers Must Ensure Depending On The Availability Of The Tax-Saving Options!!
Evaluate Your Investments Eligible For Tax Savings!
Your very first thing to do is revise your investments and expenditure did in the passing financial year, that are eligible for tax savings.
Yes, investment tools that fall under the category of section 80 C of the Income Tax Act are eligible for tax deduction up to Rs 150,000 from the Gross Total Income of a taxpayer. When invested in section 80C tools, it helps in reducing the total tax liability.
Some of the tools included in Section 80C are Life Insurance Premium, investments in Public Provident Funds (PPFs), ELSS, Sukanya Samridhhi Yojana, Subscription in National Savings Certificate, principal repayment of housing loan, registration/stamp duty on property, etc.
Apart from these, there is some kind of your expenditures done throughout the whole year eligible for tax deductions. Expenditures like tuition fees paid in India, principal repayment on home loans, etc. are also eligible for deduction u/s 80C. The maximum tax deduction you can claim from this section is restricted to Rs 1,50,000.
Section 80D also mentions tax deduction options that include, medical expenditure, up to Rs 25,000 for self and spouse and children. Additional deduction up to Rs 25,000 is available on the health insurance of parents, and up to Rs 50,000 in case they are senior citizens.
Investments Proof Submission To Your Employer Is Must!
Financial Experts suggest taxpayers must invest in tax saving options included in Section 80C and 80D, then collate all investment proofs and submit the same with their employer at the earliest to avoid higher deduction of tax at source.
This will also avoid unnecessary blockage of funds in the form of TDS, which may be deducted by the employer if the employee doesn’t submit the investment-related documents.
PAN-AADHAR Must Be Linked Before 31st March 2022!
If you have also your PAN not linked with your AADHAR, then do it mandatorily before 31st March 2022. Non-compliance with the same may attract a penalty of up to Rs 1000 under Section 234H of the IT Act.
You must know that not linking your PAN with AADHAR, might hamper your financial transactions involving PAN and also can attract a penalty of up to Rs 1000 under Section 234H of the IT Act.
Advance Tax Payments!
Taxpayers who are liable to pay a tax equal to Rs. 10,000 or more are more liable to pay advance tax. However, resident senior citizens or retirees who are not deriving any income from business or profession are not categorized for advance payments.
The taxpayers are liable to pay the entire amount of advance tax up to 15th March 2022 for FY 2021-22. Failure to pay the advance tax within the due time would subject the taxpayers to interest consequences.
Your Long-Term Capital Gains Can Save Taxes For You!
Taxpayers who have invested in tools that yield long-term capital gains can claim a tax deduction on the same. Experts say tax deduction up to Rs 1 lakh can be claimed on long-term capital gains under Section 112A of the IT Act on listed equity shares, units of equity-oriented mutual funds, etc.
Keep reading our article and stay updated with the latest news about Mutual Funds!
For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).