You should complete these important tax tasks before December 31
What's the story
As the year-end approaches, taxpayers and businesses need to be aware of three important financial deadlines on December 31. These tasks are Aadhaar-PAN linking, filing revised or belated income tax returns for FY2024-25, and submitting annual GST returns. Not meeting these deadlines could disrupt tax filing, banking and investment activities, as well as compliance obligations.
Linking deadline
Aadhaar-PAN linking
Taxpayers who got their Aadhaar on or before October 1, 2024, must link it with their Permanent Account Number (PAN) by December 31. If this isn't done, the PAN will become inactive. This could affect several financial transactions like opening bank accounts, getting debit/credit cards, buying mutual funds, and depositing cash over prescribed limits. An inactive PAN also affects income tax filing refunds, TDS/TCS credits, and submission of Form 15G/15H for nil TDS.
Filing returns
Revised or belated income tax returns
December 31 is also the last day for taxpayers to file revised/belated income tax returns for FY2024-25 under Section 139(5) of the Income Tax Act. This provision allows corrections to earlier filed returns. After this date, revised filings aren't allowed barring in certain cases where an updated return can be filed with approval from the tax department.
GST
Annual GST return filing
For GST-registered entities, December 31 is also the due date for filing their annual GST return. This consolidated return contains the details of total sales, input tax credits claimed, any taxes paid, and refunds received during the financial year. Any delays or mistakes in filing might attract late fees, and scrutiny or notices from tax authorities. Hence, year-end compliance is vital to avoid such penalties.