As the financial year 2017-18 is soon to end, you need to complete some of the essential filings before this date as else you may end up paying higher taxes or some of your running investment accounts may get freezed.
1. File pending ITRs:
The rules have changed and in case you are left with filing ITRs for the AY 2016-17 and AY 2017-18, you can still file belated tax returns with the department after computing your correct tax liability and paying the dues along with applicable interest.
Also, the revision of the filed return for both the assessment years i.e AY 2016-17 and 2017-18 will only be allowed only until March 31, 2018. The revision of the ITR can be attempted to claim TDS credit, expenses or to disclose income previously not reported with the dept.
Further tax department has time and again warned taxpayers to ‘come clean' and file their pending returns latest by March 31st as else there will be penalty or prosecution depending on the case.
For the FY 2017-18 (AY 2018-19), the last date for filing ITR for individuals is July 31, 2018 while for businesses it is September 30, 2018.
2. Make investments for availing tax deduction
To reduce your tax liability for the financial year 2017-18, you can consider investment in various tax-saving options that are allowed deduction upto Rs. 1.5 lakh under section 80C. Insurance premium, tax-saving deposits, tax-saving mutual funds, NSC, PPF allow such deduction. Also, some of the expenses categories are allowed deduction under the head including tuition fees, principal repayment against a housing loan.
Mediclaim expenses are also allowed a deduction upto Rs. 25000 for self, spouse and dependent children and in respect of parents for an additional Rs. 25000. The limit in case of senior citizens has been increased to Rs. 30000. Proofs for claiming HRA and LTA exemption are also to be provided.
If you are a salaried individual, all such investments made are to be produced by way of proofs to the employer so that the deductions are allowed when the employer computes TDS from the salary income.
3. Pay off advance tax dues:
All taxpayer categories, excluding salaried class for whom the employer deducts TDS, are required to self-assess their tax liability on estimated income for a given financial year and pay off the dues as advance tax at pre-defined regular intervals. So, make sure you make the payment on time as interest implications arise due to late payment.
4. Book long term capital gains from equities:
As LTCG tax implications on equity investments on gains on over Rs. 1 lakh will be charged @ 10% with effect from April 1, 2018 investors can avoid such tax by booking profits by March 31 in case the gains are over Rs. 1 lakh. Experts advice not to sell stocks which are trading at a price below their price on January 31.
5.Pay minimum contribution to keep NPS, PPF active:
There is some minimum sum that you need to contribute annually towards these accounts as else the account will become inoperative. Individuals maintaining NPS Tier I account need to contribute Rs. 1000 annually while for PPF the minimum investment amount is Rs. 500. Penalty of Rs. 50 is charged for each year of non-payment of minimum contribution towards PPF