It’s that time again. March 31st is fast approaching and taxes loom over many of us. Tax laws can leave us dazed and confused. Here’s what you need to do before the deadline.
If you are working at a company, make sure you’ve filed your investment proofs and there are no mistakes. Double check just to make sure that everything is accurate.
Make More Investments
If you are being taxed a hefty amount, it’s not too late to make investments. Your bill needs to have a date that is before or on 31st March 2017. Once the financial year ends, no investments post that date will be accepted for the year 2016-17.
File your tax returns on time. Filing your returns post 31st March can attract penalties and fines.
PPF is the best
Open a PPF account or contribute to your existing one. PPF is a reliable and safe investment that offers high rates of interest. Make sure at least Rs.500 is deposited in the account for the year. Failure to deposit Rs.500 at least will attract a fine of Rs.50.
In light of demonetisation, the last date to exchange Rs.500 and Rs.1,000 notes is March 31st. You can do so at designated branches at the RBI offices. However, civilian experiences suggest that only NRI counters are open.
Recharge your NPS
If you hold an NPS account, make sure Tier I is active by contributing at least Rs.1,000 by March 31st. Your account can be frozen if you do not make the minimum annual contribution.
Save for Next Year
If you have already filed your returns and are tax free, don’t make anymore investments till April 1st! The investments can be taken into consideration for the next fiscal year.
Speak to an Advisor
Taxes can be taxing! If you don’t know what you are doing, there are websites online that can provide advice and help for free. If you still don’t know what you’re doing, tax experts don’t charge high fees. Speak to an advisor to get more information on your taxes and find out how you can save more.
When people get their first job, they usually don’t care or don’t know much about tax. If you’re under the tax bracket, you can still file your returns and show the government that you don’t have to pay any tax. The reason to do this is Tax returns sometimes come in handy for a number of applications like Visas, loans and more. You can get around in life without showing your IT returns, but it will prove useful somewhere or the other. It will also be a stepping stone to when you actually have to start paying taxes. You will be more aware of the process and the what it entails.