BackFrom PAN-Aadhaar linking, advance tax to EV interest benefit, 5 tax rules to end on March 31
Abhishek Soni, Co-founder & CEO of Tax2win said, taxpayers must also be aware of the various tax rules with a deadline of March 31, 2023, and take necessary action before it is too late.
PremiumMarch is not just a busy month for closing the financial accounts, but also a very important period for taxpayers. A host of tax obligations need to be fulfilled by end of March 31st to avoid delays and penalties. Every salaried individual or companies are needed to pay their taxes and also claim tax benefits. That being said, there are 5 tax rules which will be ending on March 31, 2023.
As per Abhishek Soni, Co-founder & CEO of Tax2win, a Fisdom company, taxpayers should take note that there are several tax rules that have a deadline of March 31, 2023. These are:
1. The last date for enjoying the interest benefit on loans taken to purchase an electric vehicle under Section 80 EEB is March 31st, 2023.
Under section 80 EEB of the Income Tax, individuals can claim a deduction of ₹1.5 lakh on interest payments on their vehicle loans availed for buying electric vehicles either for personal or business use.
This benefit on electric vehicles is offered for the financial year from April 1st, 2019 till March 31, 2023.
2. Taxpayers who have not yet filed their updated income tax returns for FY 2019-20 (AY 2020-21) should do so before the deadline of March 31st, 2023.
During the Budget 2022, the Centre launched a new ITR form called 'ITR U' for updating income tax returns.
ITR-U or updated income tax return is a form that enables taxpayers to file the ITR or to correct errors or omissions on their ITRs up to two years from the end of the relevant assessment year to update their return. A taxpayer could file only one updated return for each assessment year(AY).
3. Deadline to link PAN and Aadhaar is March 31, 2023. After this date, the PAN will become inoperative.
The section 139AA of the Income Tax Act provides that every individual who has been allotted a Permanent Account Number (PAN) as of the 1st day of July 2017, and who is eligible to obtain an Aadhaar number, shall intimate Aadhaar number in the prescribed form and manner. That being said, such persons have to mandatorily link their Aadhaar and PAN before the scheduled deadline.
The deadline for Aadhaar - PAN linking has been extended on many occasions and the latest would be March 31st, 2023. For those who fail to link, their PAN will become inoperative from April 1 of this year.
4. Deadline for paying advance tax for FY 2022-23, is March 31st, 2023. From April 1, 2023, onwards, taxpayers who have not paid their advance tax will be required to pay interest under section 234B.
The Income Tax department levies different types of interests are levied for various kinds of delays/defaults.
Under section 234B, interest is levied for default in payment of advance tax. Generally, the interest for default would be 1% per month or part of a month. The nature of interest is simple interest. In other words, the taxpayer is liable to pay simple interest at 1% per month or part of a month for default in payment of advance tax.
Taxpayers are required to pay advance tax during a financial year if the estimated tax liability of the assessee during that year is ₹10,000 or more.
5. Deadline for tax-saving investments for FY 2022-23 is also March 31st, 2023. It is advisable to invest at the earliest to avail of the available tax-saving deductions
Taxpayers who have opted for the old tax regime are required to complete their tax-saving investments before March 31, 2023, for the current financial year. This is because any investments after FY23 will not be available for claiming deductions in the older tax rules when ITR filing.
Lastly, Soni said, "taxpayers must also be aware of the various tax rules with a deadline of March 31, 2023, and take necessary action before it is too late. Tax2win’s 'Income tax calculator' can assist taxpayers in determining which income tax regime is better for them in FY 2023-24."
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