FAQ's

Income Tax

FEMA/RBI Regulations

Attention Tax Payers! Do the Needful Before March 31, 2014 Ends - India Income Tax, India Wealth Tax etc

March 31, 2014 is approaching. With this FY 2013-14 will end. Certain things require an action before the Financial Year (FY) ends. Below is some compliance as well planning areas, where needful may be required from taxpayer:

 - Deduction U/s 80C (Rs 1 Lac): Can be availed if investments in specified schemes have been made in the relevant FY.    For the same, payment must be made before this FY ending.

 - Deduction U/s 80D, 80E, 80G: Under Income Tax Act, variousdeductions are available on the payment basis. E.g. Medical Insurance Premium (Sec 80D), Education Loan Interest (Sec 80E), Donations (Sec 80G) etc.

 - Property Municipal Taxes: Deduction for Municipal Taxes can be claimed against Income From House Property only to the extent of the payment made in the related FY.

 - Filing of Pending ITR:If Income Tax Return (ITR) is not filed for previous FY(s). The same can be filed belatedly. However, the same must be filed before March 31, 2014. An ITR for FY 2011-12 can be filed belatedly upto March 31, 2014. And an ITR for FY 2012-13 can be filed by March 31, 2014 without the attraction of any penal provision.

 - Wealth Tax Planning: Wealth Tax is payable on the basis of value of assets as on March 31 of a FY. Hence, care is needed to apply proper tax planning to keep the Wealth Tax Liability to minimum e.g. keep cash balance below Rs 50,000 etc.

 - Payment of Taxes (Advance Tax): As per Tax provisions, advance tax liability must be paid in the year of income earned by the assesse. Hence, wrt FY 2013-14, advance tax liability must be paid before March 31, 2014. If the same is not paid so, an interest @1% shall be applicable wef April 1, 2014 till the date of liability so paid.

 - ITR V Submission with CPC:An ITR filed online needs a further action i.e. posting of ITR V (ie. Acknowledgement) with the IT Deptt. For the same, time period is 120 days from the date of online filing of ITR. However, recently, CBDT has given a waiver wrt earlier years related ITR V, where they have allowed to submit the pending ITR V to be filed by March 31, 2014.

 - Other Tax Plannings: Similarly, there can be various other kind of tax planning where doing or not doing the needful by March 31 would be of importance. E.g. payment of expenses,receipt of income etc.