7 personal finance and income tax related tasks to complete before March 31

 


The financial year 2021-22 is coming to a close and there are several income tax and other investment related tasks that you may have to complete before March 31, 2022. In failing to do so, you may not only lose income tax benefits that you could have availed but also end up making some of your investments in an inactive state. Make sure you do complete these important income tax and investments related tasks before 31.3.2022.

1. PMAY – EWS/ LIG category

Pradhan Mantri Awas Yojana – Urban (PMAY-U) is aimed at urban housing shortage among the EWS/ LIG and MIG category. The last date to apply under EWS/ LIG category is March 31, 2022. For those who are eligible for this category, the home loan comes at a subsidised interest rate under the Credit Linked Subsidy Scheme (CLSS) of the government.

2. Last date to link PAN-Aadhaar

The last date for linking Aadhaar with PAN is March 31, 2022. Earlier, the last date to link a PAN card with Aadhaar was September 30, 2021. Make sure you have linked your PAN with Aadhaar, else the PAN will become ‘inoperative’.

3. Last date to keep PPF, NPS, SSY account active

Certain investments such as PPF, NPS, Sukanya Samriddhi Account (SSY) require a minimum amount to be put into the account in each financial year in order to keep them active. Failing to deposit a minimum amount in PPF, SSY, NPS will make those accounts inactive and one will have to regularize or unfreeze it before making fresh investments. The process of reactivating may be time-consuming and may also involve a penalty. In order to avoid this, make sure you have invested the minimum amount before the financial year ends.

The minimum annual contribution for the PPF account in a financial year is Rs 500 failing which the Account gets a discontinued status and withdrawal will not be allowed, and no loans can be taken against it. For NPS account holders, it is mandatory to make a minimum contribution of Rs 1,000. A minimum deposit of Rs 250 in each financial year is required to keep the Sukanya Samriddhi Account active.

4. Additional deduction on home loan

The benefits of additional deduction of Rs. 1.5 Lakh for the homebuyer’s interest paid on home loan (over and above Rs. 2 Lakh under section 24 of Income Tax Act) is available up to 31st March, 2022 under Section 80EEA of the Income Tax Act. If you are eligible for the home loan under Section 80 EEA, make sure you avail before the scheme ends.

5. Last date to save tax for FY 2021-22

If you still haven’t finished tax planning or not exhausted Section 80C limit of Rs 1.5 lakh or not availed any other tax benefit yet, you need to hurry up as the last date is March 31, 2022. This is especially, if you have opted for the old tax regime and not agreeing to go along with the new tax regime.

Under the old tax regime, you may avail income tax benefits available under Chapter VI A of the income tax Act. From PPF, life insurance, ELSS to NSC, Tax saving bank deposit etc, there are several options to choose from.

If you have already exhausted the Section 80C exhausted, you can still save tax when you hold a health insurance policy. The premium that you pay even for parents qualifies for deduction. Currently, for those who are below age 60, the limit stands at Rs 25,000, else it is Rs 50,000 for senior citizens. The premium paid towards any of these schemes gets deducted from the gross income under section 80D.

6. Last date to file belated returns

The last date to file a belated return for the FY 2020-21 or AY 2021-22 is March 31, 2022. If you fail to file ITR by this date, there could be a penalty of up to Rs 10,000, while the penalty for those with annual income less than Rs 5 lakh is Rs 1000.

7. Pradhan Mantri Vaya Vandana Yojana

If you are looking to park funds for rgualr monthly income and earn a higher rate before it likely comes down, then investing in Pradhan Mantri Vaya Vandana Yojana may be looked at. The PMVVY is available only with LIC India and for the financial year 2021-22, the PMVVY scheme provides an assured pension of 7.40% per cent payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March, 2022.

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