3 Things to make sure before the FY ends
Posted on: 27/Mar/2018 6:19:45 PM
As you have only a very few days left for the end of the ongoing financial year, you got to apprehend and remember these three tax-related procedures which are
- Filing returns for the past financial year
- Take all kinds of tax-saving measures
- Book for long-term capital gain out of equities
These need to be completed before the start of the next financial year.
Tax filing for previous years
For every individual or Hindu undivided family, according to section 139(1) of the Income Tax Act, July 31 is the last date to file Income Tax Return. There was however an amendment in Section 139(A) as made by the Finance Act of 2016. From the end of financial year, the deadline for tax filing is brought down from 2 years to 1 year. Thus, those who have not filed IT returns for FY16 and FY17, both need to be done within 31st March.
In case you have incurred any loss in business, you will not have the opportunity to carry forward the loss as business loss or loss in short-term or long-term capital in the next financial year.
In case of mistakes made in IT filing before July deadline and you need to revise the return, it has to be done before 31st March because it is mandatory to file revised return before 1 year of assessment year end or before the assessment gets complete (whichever is earlier). For those who file tax returns late, a penalty would be charged. A penalty of Rs 5000 and interest on tax amount will be applicable for those who fail to file tax return.
Investments that save your tax
According to Section 80C of the Income Tax Act, it is possible to save tax amount by up to Rs 1.5 out of Public Provident Fund, National Savings Certificates, life insurance premium, postal savings or bank savings of 5 years, savings scheme linked to equity, housing loan repayment, etc. In case you have not invested in any such tax saving scheme, make sure to get it done before 31st March so that you can save up to Rs 45000 based on your income slab.
Long-term capital gains out of equities
Starting from 1st April, for LTCG out of sale of equity or equity mutual funds that are of one or more years, a tax of 10 percent without any benefit of indexation will be applicable. For up to Rs 1 lakh in a financial year, LTCG will however be exempted. The LTCG accumulated until 31st January 2018 will not be included for tax.
