#FinancialBytes: Financial deadlines to watch out for in March 2020
One must stay on top of crucial financial deadlines in order to have an organized financial life and avoid penalties. The end of the financial year 2019-20 is almost here, and there are several financial deadlines, including PAN and Aadhaar linking and deducting tax on rent, to meet in March. Here are five significant financial deadlines in March 2020 to be aware of.
The deadline for paying the fourth (and final) installment of the advance tax is on March 15. Income tax payable in installments during a financial year is called the advance tax. It's paid when an assessee's income tax liability exceeds Rs. 10,000 in a financial year. There are four dates for paying advance tax installments: June 15, September 15, December 15, and March 15.
Individuals who haven't filed their income tax returns (ITRs) for the financial year 2018-19 (the assessment year 2019-20) can file the same before the deadline of March 31 this year. However, a late filing penalty of Rs. 10,000 will be levied. One can also file a revised ITR in case there are any mistakes or errors in the original one before the last date.
The last date for linking one's Permanent Account Number (PAN) to their Aadhaar card has been extended several times. However, the previous deadline of December 31, 2019, has been extended by the government to March 31, 2020. According to the Income Tax Department, non-Aadhaar linked PAN cards will become inoperative after the deadline. Individuals will not be able to do several tax-related transactions too.
Tenants who pay a house rent of more than Rs. 50,000/month are required to deduct tax at source (TDS). The tax on the rent paid is deducted at a rate of 5% in a financial year. It is deducted at the end of a financial year or at the time of vacating the house. The deadline for the current financial year is March 31.
Tax saving is an important part of an individual's overall financial planning and can help in achieving one's financial objectives. There are a number of deductions available under various sections of the Income Tax Act that can help in lowering one's taxable income by minimizing their tax liability. Individuals are required to complete their tax-saving related investments before March 31 for FY 2019-20.
