Act Before Financial Year Ends
Financial year starts from 1st April and ends on 31st March. We have to pay tax on the total income earned during the year from various sources. 31st March is a very important date for every tax payer. An act of negligence may result in payment of interest and penalty in future. Financial year 2014-2015 is about to end. Therefore, such important work must be completed before 31stMarch.
Investment in tax saving schemes
Most of people are now aware that they can save tax by investing in some specific schemes. Investment can be done any time during the financial year but generally employees are asked to submit their investment proof sometime in January or February.Employers fix the date for submission of proof much in advance so that the same can be verified well in time and tax can be calculated accordingly. On the basis proof you submit if there is any balance tax to be paid that is adjusted in the salary for the month of March. Sometime it may happen that the employee is not able to complete the maximum allowable limit for claiming deduction before such date. Employees may have investable surplus later but usually think that there is no use of investing now in the current financial year as employer has already deducted the tax. This is true in most of the casesthat your employer may not consider the proofs later but as a matter of fact you can claim the refund while filing your ITR if you invest in such tax saving scheme anytime before the end of financial year.
Payment of advance tax
Not only the companies but all such individuals who have income from business or profession are liable to pay advance tax during the financial year. Though for salaried individuals tax on their income from salary is deducted at source from their salary itself on monthly bases but you may have some additional income like interest on fixed deposit, income from house property or capital gain in the current financial year. In such case you will have to pay tax on such additional income at your end as your employers may not consider the same while calculating tax. Installment of advance tax for individuals becomes due from 15th September and you are liable to pay interest at the rate of 1% per month of the due amount in case of default in payment on due date. This interest keeps on adding until the total tax is paid. To avoid the accumulation of interest further you must pay the total dues before 31st March.
Filing ITR for previous years
Though the due date of ITR filing is already over but you can still file your ITR for two previous financial years with limited benefits if you have not filed yet. As per income tax law ITR can be filed until the end of two years from the end of year in which income is earned. For instance, ITR for the income earned during financial year 2013-2014 can be filed until 31st March 2015. After 31st march 2015 ITR for Financial Year 2012-2013 cannot be filed. ITR for the income earned during FY 2013-2014 can be filed till 31st March 2015 without any penalty after which assessment officer may levy a penalty of Rs. 5000. ITR for FY 2013-2014 can be filed till 31st March 2016.
Payment of professional tax
If you are a salaried individual than you don’t need to worry as your professional tax is deducted from your salary on monthly bases. If you have income from business or profession then you mustyou’re your professional tax by 31stMarch.
Payment of Service Tax
Many individuals nowadays work on retainership bases. They get monthly fixed remuneration but they are not on the pay role of the company. Many individuals work on freelance bases especially in media industry. These individuals are liable to pay service tax if their gross income exceeds Rs. 10 lakh in one financial year. Last installment of service tax for current financial year must be paid by 31st March.
Payment of Property Tax
If you have let out a residential property then you can claim deduction for property tax you pay to the municipal corporation, while calculating income from house property. This can be claimed in the financial year in which it is due and paid. Pay your property tax before 31st March if you have not paid it otherwise you will not be able to claim the benefit in current financial year.
Claiming depreciation
Except salaried individuals all others who have income from business or profession can claim depreciation on their car, computers or appliances they use for their business or profession. If you are planning to buy a car or computer you should buy before 31st March 2015 in order to claim depreciation in the current financial year.
