Here are the financial tasks you must complete before 31 March

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As we approach the end of the current financial year, there are some money-related tasks that you must undertake immediately. Mint reminds you of three important tasks and what defaulting could entail.

Make minimum investment in PPF, SSY, NPS

Small deposit schemes Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) require minimum investment of 500 and 250, respectively, every financial year to keep them active. National Pension Scheme is another such investment option wherein Tier 1 account holders have to deposit a minimum of 1,000 each fiscal.

Defaulting leads to these accounts getting inactive and you need to pay a small default fee along with a re-subscription fee to reactivate the account. Default penalty for PPF, NPS and SSY is 50 along with 500 arrear for each default year, 100 with 1,000 arrear for each default year and 50 per default year, respectively. An inactive account of any of the three savings schemes will keep earning interest on the existing balance.

Link Aadhaar and PAN

PAN that is not linked with Aadhaar by 31 March will become inoperative. An inoperative PAN will prevent you from carrying out any transactions that mandate PAN, such as withdrawal or deposits of 50,000 or more, payments made in cash of over 2 lakh. Your trading account may also get suspended and you could face problems in your income tax returns processing.

You can link your PAN with Aadhaar on the IT department website https://www.incometax.gov.in.

File belated ITR

The last date to file income tax return for assessment year 2021-22 was 31 December 2021. Taxpayers who defaulted on this got a three-month window to file a belated ITR. The penalty for a belated ITR is 1,000 for incomes below 5 lakh and 5,000 for others. For those who have tax due below 1 lakh, they have to pay 1% monthly interest beginning January this year, whereas in cases where the tax liability is over 1 lakh, the interest will be charged from August 2021 onwards, i.e., right after the original ITR filing deadline of 31 July 2021.

 

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