Personal finance

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

The 2021-22 fiscal year is coming to an end and there are several income tax and investment related tasks you may need to complete before March 31, 2022.

The 2021-2022 fiscal year is coming to an end and you may need to complete several income tax and investment-related tasks before March 31, 2022. Failure to do so not only risks losing the tax benefits you could have enjoyed, but would also end up making some of your investments in an inactive state. Be sure to complete these important income tax and investment related tasks before 31.3.2022.

1. PMAY – EWS/LIG category

Pradhan Mantri Awas Yojana – Urban (PMAY-U) targets the shortage of urban housing among the EWS/LIG and MIG categories. The last date to apply under the EWS/LIG category is March 31, 2022. For those who qualify for this category, the home loan comes with a subsidized interest rate under the credit-linked grant program ( CLSS) of the government.

2. Deadline for linking PAN-Aadhaar

The last date to link Aadhaar to PAN is March 31, 2022. Previously, the last date to link a PAN card to Aadhaar was September 30, 2021. Make sure you have linked your PAN to Aadhaar, otherwise the PAN will become “inoperative “. .

3. Deadline to keep PPF, NPS, SSY account active

Some investments such as PPF, NPS, Sukanya Samriddhi Account (SSY) require a minimum amount to be paid into the account during each financial year in order to keep them active. Failure to deposit a minimum amount in PPF, SSY, NPS will render these accounts inactive and will need to be regularized or unfrozen before making new investments. The reactivation process may take time and may also involve a penalty. To avoid this, make sure you have invested the minimum amount before the end of the financial year.

The minimum annual contribution for the PPF account during a financial year is Rs 500, failing which the account gets a suspended status and withdrawal will not be allowed, and no loan 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 during 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 interest paid by the buyer on the home loan (beyond Rs. 2 Lakh under Section 24 of the Income Tax Act Income) is available until March 31, 2022 under Section 80EEE of the Income Tax Act. If you qualify for the EEA Article 80 home loan, make sure you get it before the program ends.

5. Deadline to save tax for fiscal year 2021-22

If you have still not completed the tax planning or exhausted the Section 80C limit of Rs 1.5 lakh or availed some other tax benefit yet, you should hurry because the last date is March 31, 2022. This is especially true if you opted for the old tax regime and did not accept the new tax regime.

Under the old tax system, you can benefit from the tax advantages provided for in chapter VI A of the law relating to income tax. From PPF, life insurance, ELSS to NSC, tax savings bank deposit, etc., there are many options to choose from.

If you have already exhausted Section 80C, you can still save tax when you have a health insurance policy. The premium you pay even for the parents is deductible. Currently, for those under 60, the limit is Rs 25,000, otherwise it is Rs 50,000 for seniors. The premium paid to one of these schemes is deducted from gross income under Section 80D.

6. Deadline for filing late returns

The last date to file a late return for the 2020-21 financial year or the AY 2021-22 is March 31, 2022. If you do not file an ITR by this date, a penalty of up to Rs 10,000, while the penalty for those whose annual income is less than Rs 5 lakh is Rs 1000.

7. Pradhan Mantri Vaya Vandana Yojana

If you are looking to park funds for regular monthly income and earn a higher rate before it probably drops, then investing in Pradhan Mantri Vaya Vandana Yojana can be considered. The PMVVY is available only with LIC India and for the financial year 2021-22, the PMVVY scheme provides an insured pension of 7.40% per cent payable monthly. This insured pension rate will be payable for the full term of the 10-year policy for all policies taken out through March 31, 2022.