09-Mar-2023
2 mins read
We have already entered the month of March, which is almost more than a week, and deadlines for several financial duties are approaching as the current fiscal year concludes on March 31, 2023. In a typical practice, many individuals do ignore many important financial activities which one has to fulfil, which have a good impact on the financial world.
In India, we follow the financial year starting from April and ending in March of the following year, and the related details are to be filed in line with the given dates and months. As a Taxpayer and an individual, one has to keep a few things in mind before the completion of the current financial year 2022-2023.
Below are a few of the key financial duties which one has to complete on an urgent basis before March 31 2023:
- The long duration is, at last, concluding for PAN-AADHAAR Linking this March 31 2023:
The Permanent Account Number has to be linked to Aadhaar by 31ST March 2023 and is already mandated by the government. It was a number of times the central government postponed this linkage date, and as a major negative signal from the Income Tax Department, PAN would stop being “operational” from the next month if the present deadline was missed. Taxpayers who fail to link the two after the cut-off date must bear a Rs 1,000 fee or penalty.
- Last date to revise IT return for the Assessment year 2020-2021:
The updated income-tax return for FY 2019–2020, or AY 2020–21, must be submitted by March 31 2023, which is the last date. Taxpayers cannot file the same after the deadline is met, and the same remains invalid if filed later.
- Payment and Calculation of the last instalment of Advance tax:
In India, we can pay advance tax in four instalments after assessing the expected income for the whole financial year. According to the IT department, the last instalment of the advance tax payment for the current financial year 2022–2023 must be submitted by March 15, 2023.
The taxpayer would be responsible for paying the penalties in the event of any advance tax payment is defaulted or shortly reported. According to the Income-Tax Act, a person must pay advance tax if their projected tax liability is Rs 10,000 or more after Tax Deducted at Source (TDS) deductions.
- Tax planning and investment decisions:
During the current financial year 2022-2023, taxpayers who choose the older regime of income tax filing must complete their tax-saving investments before March 31, 2023. Taxpayers may deduct a number of expenses relating to their assets under the previous tax regime. All the investments made within March 31 2023, only will be eligible for the tax deduction in the income tax return.
- Accounts and Financial statements preparation and related accounting adjustments:
In a common way of practice, the books of accounts are usually closed in the month of March 31 2023, and the related stock and accounts initial adjustments should also be done by the individuals with respect to the closing of the accounts, the closing stock calculations, the cash and bank reconciliations and the debtors and the creditor’s ledgers have to be checked and closed accordingly.
There need not be final adjustments and the financial entries to be made. But the initial steps have to be taken for the smooth and accurate flow of the final figures after the closure of the financial year.
Above are a few of the financial decisions and the duties to be fulfilled by an informed individual and a taxpayer. Any of the faults in the above-mentioned points may have negative impact on the financial health of the person. So, one has to keep all the above-mentioned points in mind and complete the related tasks if not completed within the stipulated time.
