With March 31, 2023, just around the corner, it’s time for all taxpayers, including individuals, freelancers, and corporations, to take stock of their finances and plan accordingly. With Income Tax and GST deadlines fast approaching, it’s important to stay on top of the latest regulations to avoid any last-minute confusion.
Here are the things you need to keep in mind before March 31, 2023:
By March 31, 2022, you must link your Permanent Account Number (PAN) to your Aadhaar card. If you fail to link your PAN card to Aadhaar by the deadline, it may become invalid.
To link the PAN card to Aadhaar, you need to pay a fee of Rs 1,000.
If your expected yearly income tax for the current financial year is at least Rs 10,000, you must pay advance income tax in four instalments throughout the year.
The deadline for the last instalment for revenue generated in FY 2022-23 is March 15, 2023. It is applicable to all taxpayers, including paid workers, freelancers, and corporations.
March will be the last month to make tax-saving investments for the fiscal year 2022-23. PPF, tax-advantaged fixed deposits, NSC, and other investments fall under this category.
Remember, your tax-saving investments should fit into your overall investment plan, which means they should maximize your wealth rather than simply saving you money.
Salaried individuals who join any new organization in the middle of the year or have changed jobs during the financial year 2022-23 need to furnish Form 12B by the end of March 31, 2023.
To keep certain investments like PPF, NPS, Sukanya Samriddhi Account (SSY) active, you need to deposit a minimum amount in the account every financial year.
Failure to do so may result in the closure of accounts and unfreezing them may take time and may also involve a fine.
The last date to file ITR under section 139(1) for FY 2019-20 or AY 2020-21 is gone, but you can still file an Income Tax Return.
The new concept of updated Income Tax Return (ITR-U) introduced in the Finance Act of 2022 allows taxpayers to file their ITRs after two years of the due date of filing, subject to payment of additional taxes. For FY 2019-20, the ITR-U can be filed by March 31, 2023, with 50% of the aggregate of tax and interest payable.
The facility to furnish a LUT for FY 2023-24 is available on the GST portal. The date of expiry of the validity of LUT is 31st March 2023.
All registered taxpayers who export the goods or services will have to furnish Letter of Undertaking (LUT) in GST RFD-11 form on the GST portal in order to make exports without payment of IGST.
A taxpayer whose turnover is below Rs 1.5 crore can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75 lakh. A taxpayers supply services having turnover below Rs 50 lakh can also opt for composition scheme.
Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover. The last day to opt in the composition scheme is end of March i.e. 31-03-2023.