Mark your calendars with these financial deadlines in 2020
March 31: Credit subsidy on home loans under PMAY
This is the last date to avail the benefit under Pradhan Mantri Awas Yojana (PMAY) for the middle income group. Under the Pradhan Mantri Awas Yojana (PMAY) scheme, categories are divided on the basis of annual household income. MIG-I household's income lies between Rs 6 lakh and Rs 12 lakh and this category is eligible to avail credit subsidy of four per cent. MIG-II would be those whose household income is between Rs 12 lakh and Rs 18 lakh and they can avail subsidy of three per cent.
March 31: Investing in PMVVY for senior citizens
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens. It offers a guaranteed payout of pension at a specified rate for 10 years. Returns are in the range of 8-8.3 per cent depending on the mode of investment and higher than those offered by fixed deposits. Under PMVVY, senior citizens can invest up to Rs 15 lakh. The scheme is open for subscription only till March 31, so senior citizens who want to invest in it can do so by then.
March 31: Filing belated, revised ITR
If you haven't filed your income tax return yet for FY 2018-19, do it by March 31, 2020. If you miss this deadline, then you will not be able to file your ITR unless the tax department asks you to do so. You will also have to pay late fee of Rs 10,000 for filing belated ITR. Similarly, if you made an error in the original ITR and wish to revise your ITR for FY 2018-19, then too March 31, 2020 is the last date. If you don't file by this date, you will not be able to file the revised ITR at all.
Depositing TDS on rent with government: Depends on date of tax deduction
If you are paying rent of more than Rs 50,000 a month, then as per income tax laws, you need to deduct tax on the rent paid. Tenants must deduct tax on total amount of rent paid at the rate of 5 per cent once in a financial year, either when vacating the house during the financial year or at the end of it, i.e. March 31, whichever is earlier. Ensure that the TDS is deposited with the government within 30 days from the end of the month in which deduction is made. Failure to do so will attract penalty and interest.
Tax-saving related investments: March 31
It is important to make investments in specific financial instruments under section 80C and/or other expenses incurred to save tax. If you don't do this by March 31, you will not be able to claim the benefit of tax-saving deductions and end up paying higher taxes. For instance, a tax-saving investment of Rs 1.5 lakh under section 80C, can cut tax outgo by Rs 46,800 (cess included) for person paying tax at the rate of 30 per cent. So finish making these investments before March 31.
Submission of investment proofs to employer: Depends on company
Talking about tax-saving, an important point to remember is the submission of required documents to your employer to avoid excess TDS deduction. Submit investment proofs, rent agreement etc. to save tax. The deadline to do so varies from company to company. Therefore, it is advisable that you check with your HR or finance department to know the deadline to submit these documents and avoid excess TDS deduction from your salary.
TDS certificate from employer, bank: Collect documents from June 15
Your employer has to give you Form 16 (TDS Certificate), showing your salary details during the year and tax deduction. Similarly, bank will issue you Form 16A (TDS certificate) for tax deducted if the interest amount exceeds Rs 10,000 or for senior citizens, Rs 50,000. Banks and employers start giving these June 15 onwards. The TDS certificates will help you ensure that TDS deducted is reflecting against your PAN in the Income Tax Department records using Form 26AS.
Deadline to file ITR for FY 2019-20: July 31
The next step after saving tax is to file your ITR. The last date for individuals and HUFs is July 31, unless extended by the government. If you fail to file your ITR by the deadline, you will have to pay penalty. If ITR is filed after the deadline but before December 31, 2020, then a penalty of Rs 5,000 is levied. If this is done between January 2021 and March 2021, then the penalty will be Rs 10,000. For small taxpayers, whose income does not exceed Rs 5 lakh, maximum penalty of Rs 1,000 is levied.
Linking of PAN-Aadhaar: March 31, 2020
The deadline to link PAN with Aadhaar has been extended to March 31, 2020. Earlier, the deadline was December 31, 2019. Remember if PAN is not linked with Aadhaar by the expiry of deadline, it will become inoperative. However, government is yet to notify the meaning of 'inoperative'.