Income Tax Calendar: Do these six things before March end to save money, avoid penalty
The Income Tax department has asked taxpayers to do a list of things before March 30 and March 31 end.
The clock is ticking as March 2019 fiscal year-end nears, and it is already very busy for different set of taxpayers. Even, banks have been asked to work on Sundays due to FY19 end. However, what not many are aware is that the Income Tax department has asked taxpayers to do a list of things before March 30 and March 31 end. These are right from closing their financial book to filing for Income Tax Return (ITR) or linking Permanent Account Number (PAN) with Aadhaar card. There are some six things a taxpayer needs to do before these two dates pass by, or else there will charges or prosecution from the department after the due date. If you are a taxpayer or a PAN card holder, then this is what you must know and do asap.
March 30 deadline:
1. Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of February, 2019:
Under section 194IA of IT Act, any person, being a transferee, responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor. Or this can be done at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one percent of such sum as income-tax thereon.
2. Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB in the month of February, 2019.
Under section 194-IB, any person being an individual or a Hindu undivided family (other than those referred to in the second proviso to section 194-I), responsible for paying to a resident any income by way of rent exceeding fifty thousand rupees for a month or part of a month during the previous year, shall deduct an amount equal to five per cent of such income as income-tax thereon.
March 31 deadline!
1. Aadhaar link with PAN
Aadhaar-PAN linking is mandatory now which has to be completed till 31.3.2019 by the PAN holders requiring the filing of Income Tax Return. As per Section 139AA, every person who is eligible to obtain Aadhaar is required to quote this number in the PAN application form. There are two ways to link Aadhaar with PAN. First one is using SMS facility, and second one is via e-Filing portal https://incometaxindiaefiling.gov.in.
Aadhaar number will be linked with PAN if the name of the taxpayer is identical to Aadhaar and PAN. If any person does not possess the Aadhaar Number but he had applied for the Aadhaar card then he or she can quote Enrolment ID of Aadhaar application Form.
— Zee Business (@ZeeBusiness) March 29, 2019
2. ITR filing!
IT-department in the alert says, “You can file your ITR for A.Y 2018-19 (F.Y 2017-18) by March 31, 2019, with a late fee of Rs 10,000 if you have not filed yet.”
Under IT Act there is a section called as 234F which takes care of fees for default in furnishing return of income.
However, there are two patterns of late fee in this section. The section says that a taxpayer will have to pay late fee of Rs 5,000 if the return is not furnished on or before December 31 of the assessment year and Rs 10,000 after that. On the other hand, the section also states that if a taxpayer’s income is below Rs 5 lakh, then they will have to pay penalty of Rs 1,000 only.
3. Country-By-Country Report in Form No. 3CEAD for the previous year 2017-18 by a parent entity or the alternate reporting entity, resident in India, in respect of the international group of which it is a constituent of such group.
4. Country-By-Country Report in Form No. 3CEAD for a reporting accounting year (assuming reporting accounting year is April 1, 2017 to March 31, 2018) by a constituent entity, resident in India, in respect of the international group of which it is a constituent if the parent entity is not obliged to file report u/s 286(2) or the parent entity is resident of a country with which India does not have an agreement for exchange of the report etc.
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