Make sure you finish these pending tasks before this financial year ends.
The end of March is crucial for all of us when it comes to managing our financial matters. March 31 is the end of the financial year, and various money matters such as buying tax-saving investments, claiming expenses, and filing a pending ITR must be settled before this date.
While most of us may be busy chasing year-end targets at work, it is equally important to take stock of your personal finance and settle these pending matters.
Let us tell you five such important money matters you must settle by the end of this week.
File Pending ITR
March 31, 2018 is the last date to file your income tax returns for FY 2015-16 and FY 2016-17. So in case you missed filing your ITR for the previous years, make sure to do it this week post which filing such returns could attract a penalty of 1% per month and a penalty of Rs. 5000 in special cases.
Tax-Saving Investments
All your tax saving investments made during the current financial year (FY 2017-18) form part of your ITR which you must file before July 31, 2018. So, if you have not yet made tax saving investments, then only a few days are left in your hands. There will be only four working days for banks in the last seven days before March ends, so if you are waiting to execute your tax saving plan, do not delay it anymore.
Health Check-Up
If you get your health check-up done before March 31, 2018, you can claim additional tax deductions of Rs. 5,000 under Section 80D of the I-T Act for preventive check-ups. Also, many health insurance companies allow reimbursement for the amount spent on preventive health check-ups as per their policy scheme. Remember that reimbursement amount for a preventive health check-up may vary from company to company, and only that amount will be eligible for exemption.
File Form 15G/H
If you hold a fixed deposit or deposits and their interest income is more than Rs 10,000 in a financial year, then the bank will deduct TDS from such interest income. However, if your income including such interest is not expected to fall in the taxable limit, then you can use the declaration Form 15G/H to instruct the bank for not deducting the TDS amount. Form 15H is meant for the senior citizens, whereas Form 15G is meant for others, not in the senior citizen category. This exemption limit on interest income is being revised to Rs. 50,000 from the next financial year for senior citizens.
Redeem Equity Investment to Avoid LTCG
Long-term capital gain (LTCG) from equity-oriented investment booked after March 31 would be subject to LTCG tax at 10% rate. So if you have equity investments that have become long term (which is one year or longer for equity), you can earn tax-free returns by selling them before March 31. If you sell your long term equity any time after March 31, you will be charged a 10% on long term capital gains above Rs. 100,000.
Make sure to stay financially alert and manage your money matters efficiently by clearing any other pending work before March 31, so that you can reduce your tax liability to the maximum.
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