Do these things before March 31: This will surely help you save tax

Do these things before March 31: This will surely help you save tax

This month is significant in terms of financial planning. It has two weeks left to die. Before this, you should finish some essential tasks. Here we are talking about them:

Check this year's income

If income is less than Rs 5 lakh, no tax will have to be paid. Many people don't know exactly how much their income is in a year. This is not a problem unless their income is very close to Rs 5 lakh. If your income is less than Rs 5 lakh, you will not have to pay any tax. This will happen due to the exemption granted under Section 87A. But if the income is more than Rs 5 lakh, the exemption will disappear, and your tax liability will go up to Rs 13,000. So, calculate your income from all sources. If it is a little over Rs 5 lakh, you still have time to reduce it. Tax liability can be reduced through donations to specialized institutions, purchase of medical insurance, and contracting in NPS.

Invest in small savings schemes

Interest rates are likely to be cut due to a decline in bond yield if you have not yet availed the tax reduction benefit by purchasing eligible investments and insurance products to reduce your tax burden in the financial year 2019-20, you have completed the work before March 31, 2020. should be taken. Taxpayers often do not take stock of their existing tax saving measures and therefore fail to properly evaluate their tax-saving needs. The pressure on the banking sector has made government schemes more attractive. If you are looking for investment in fixed income options, National Savingcertificates and Kisan Vikas Patra are good bets.

File Billated Returns

You cannot file late returns after March 31. The filing of new income tax returns is a penalty. The deadline for filing tax returns for FY 2018-19 (Assessment Year 2019-20) was July 31, 2019, which was later extended by one month. The next deadline for filing your return was December 31, 2019. The last term for completion of this work is March 31, 2020. But, late filing causes a penalty. If your income is less than Rs 5 lakh, the late filing fee for filing late returns is up to Rs 1000. While your income exceeds Rs 5 lakh, the penalty can be up to Rs 10,000 when filed by March 31. If there is an anomaly in your ITR, the last date for filing the revised return is also there. Entering the next financial year without filing ITR may cause problems. Therefore, it is okay to file your delayed or modified return within this time frame.

Calculate your tax liability

You can submit invoices using a 280 advance tax. The tax institution deducts the salary income of the employee. However, if you do business yourself or have income from other sources, you will have to pay tax on this income automatically. If the tax payable on such income exceeds Rs. 10,000, the taxpayer has to deposit advance tax.

Long Term FMP, Invest in Funds

Buy them now, they are eligible for double-index. Mutual funds have a contract maturity plan (FMP) with a contractual maturity date. Like debt funds, if FMP is kept for more than three years, its gains are considered as launch term capital games and are taxed at the rate of 20 percent after the index. If the holding period exceeds three financial years, the index is increased. There are now several FMps that have to be matchable in 2023-24. This way, you'll get a four-year index, even if you'll only hold them for 37-38 months.

Read also: How to save tax? What is the best investment option: Read here

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