Income Tax News Updates Check Top 3 Tasks You Need to Do By March 31
As per section 139(1) of Income Tax Act, The due date of filling income tax return is 31 July of every assessment year for individual or Hindu Undivided Family.
Just few days are left for financial year end. here three tax related task. Fill returns of previous year, Investing in tax saving instruments and LTCG means long term capital gains.
Fill Return of Previous Year
As per section 139(1) of IT Act. An assessment can file withing two yea from the end of this financial year. If you have not fill return of FY16 and FY17 then fill it by march 31. However if you have made any mistake in filling before the July deadline and want to revise the return then do it before march 31.
Tax payer can fill his revised return at any time before its expiry from the end of the assessment year or before the completion of assessment. A tax payer who fill the late return will have to pay a penalty of Rs. 5000 and even interest on tax amount due.
Complete Tax Saving Investment
Under Section of 80C of the IT act. Tax payer get deduction of Rs, 1.5 Lakh for investment in public PF, Life insurance premium, national saving certificate, any link saving scheme. if you have not invest any of the then invest it before march 31 to save tax up to 45,000 up to depending on your Income.
under section 80D Medical Insurance premium paid up to rs. 25,000 fpr self, children are eligible for deduction. Also tax payer can invest nation pension system. its is ideals retirement planning where non government employee 50% contribute. Tax exemption is allowed for up to Rs. 50,000 in year under section 80CD.
Long Term Capital Gain
From April 1, LTCG arising out of the sale and equity mutual fund. held for more than one yaer will be taxed at 10% without benefits of indexation. Also LTCG is accumulated till January 31, 2018.
People suggest booking gains from equities trading above January 31 price. one should not sell those stocks done in past. As Rs. 1 Lakh of gains are tax free at the end of every year one can sell some equity investments and also buy them again. Ans market will be closed march 28 and 29 due holidays. you last chance to sell and make tax free gains is on march 28, 2018. Although the saving Rs. 10,000. this would compound can make lots of difference if one does it for long time with power of compounding.