PAN- Aadhaar Linkage, Tax- Saving Investment to ITR Filling: Some Important Deadlines In March 2023

After March 31, 2023, taxpayers who fail to notify the Central Board of Direct Taxes of their Aadhaar number will have their PAN rendered ineffective, and all the consequences under the Act for failing to furnish, notify, or quote the PAN will apply to such taxpayers (CBDT). You will no longer be able to use the PAN for various financial transactions that require the PAN to be quoted. This includes opening a bank account, filing an income tax refund using a PAN, claiming an income tax refund, and investing in stocks and mutual funds, among other things. If you are a taxpayer, March 31 is a crucial date because it is the deadline for a variety of monetary tasks. Taxpayers should be aware that if they miss these deadlines, they will be subject to a number of penalties. Here are some important financial tasks that must be completed by March 31, 2023.

Aadhaar-PAN linkage

• The Modi government has made linking a Permanent Account Number (PAN) to Aadhaar mandatory by March 31.
• It should be noted that the deadline for linking PAN with Aadhaar has previously been extended.
• According to an Income Tax Department advisory, if the current deadline is missed, PAN will become 'inoperative' on April 1.
• After the deadline, taxpayers can connect the two by paying a Rs 1,000 fine.

Advance Tax Payment:

• According to the I-T department, the deadline for paying the final installment of the advance tax payment is March 15, 2023.
• In the event of a failure to pay advance tax, the taxpayer must pay the applicable penalties.
• According to Section 208 of the Income-tax Act of 1961, anyone with an estimated tax liability of Rs 10,000 or more for the year after deducting Tax Deducted at Source (TDS) must pay tax in advance in the form of advance tax.
• Advance tax must be paid in instalments over the course of the fiscal year.
• If the last day for payment of any advance tax installment is a bank holiday, the taxpayer should pay the advance tax on the next working day, according to the Income Tax department.
• Individuals with only salary income are not required to pay advance tax because the employer is responsible for deducting and depositing tax.

Tax-Saving Investments:

• The deadline for tax-saving investments in FY 2022-23 is March 31, 2023.
• Tax planning allows you to reduce your tax liability and save more money.
• To save a significant amount of taxes, taxpayers must take advantage of available tax-saving options.
• Under the previous tax regime, taxpayers could claim various deductions for their investments.
• Section 80 is one of the most popular deductions, allowing a taxpayer to claim a deduction of up to Rs 1.5 lakh for various investments such as premiums for life insurance policies, PPF, and ELSS, among others.
• Section 80D (premiums paid for health insurance policies) and section 80CCD (1b), which allows an additional deduction of Rs 50,000 for investing in the National Pension System, are two other popular deductions (NPS)

Income-Tax Return Filing:

• The deadline to file the revised income tax return for fiscal year 2019-2020, or fiscal year 2020-21, is March 31.
• It is intended for taxpayers who have failed to file their income tax returns for the current fiscal year or who have failed to report any income.

Pradhan Mantri Vaya Vandana Yojana:

• PMVY is an insurance-cum-pension scheme that provides senior citizens with security.
• The deadline for investing in this scheme is March 31, 2023.
• Currently, the Pradhan Mantri Vaya Vandana Yojana has an annual interest rate of 7.4 percent.
• It has a ten-year term.
• The interest rate remains constant over the course of ten years.
• This scheme is open to anyone over the age of 60.
• The scheme provides pensions on a monthly, quarterly, semi-annual, and annual basis.
• PMVVY allows senior citizens to invest up to Rs 15 lakh.