Kolkata: Financial years are crucial for tax calculations. The deadline for paying the final instalment of advance tax was March 15. If individuals have income which are outside their salary and if their total tax liability exceeds Rs 10,000 in a financial year, they should pay advance tax. These incomes are typically due to rent, capital gains, interest accruals, freelancing, consultancy etc. Experts point out that missing the deadline can invite payment of interest under Sections 234B and 234C of the Income Tax Act. here are a series of things that you might need to do immediately.
Submission of investment proofs
Most of the employers stop taking investment proof for tax deduction for the last month of the financial year a few days before the end of the month. Those who submit tax investment projections at the beginning of the financial year must submit the proofs of the investment being done. If one delays submission of these proofs, employers can deduct more tax from the salary for March. The most frequent of these investments are linked to:
PPF investments after April 1
Life insurance premium receipts
Health insurance premium receipts
ELSS (Equity-linked savings scheme) investments
Home loan interest certificates
Rent receipts required to claim HRA
Tax-saving investments
In the new tax regime there are virtually no deductions. However, those who have not migrated to the new tax regime, there are a hos of tax breaks to be availed of. March 31 is the last date by which one should make these investments to take the benefit of tax deductions. The most common deductions are available through Section 80C of the income Tax Act. One can claim a maximum deduction of up to Rs 1.5 lakh through the instruments mentioned under this section:
PPF or Public Provident Fund
NPS contributions (not under Section 80C)
ELSS or Equity-linked Savings Scheme
SSY or Sukanya Samriddhi Yojana
Premiums on life insurance
Principal part of home loans EMI paid