In this post, we will discuss what are the tasks to be completed by all taxpayers or those who wish to plan for filing the income tax return. this post will be beneficial for all the tax assessees whether they are having salary income or business income or any other income.
What should be done by the taxpayer in march !
For Proper tax planning, every taxpayer should assess his provisional income till the month of March. After assessing his income he or she should cross-check with 26 AS for tax deducted at source.
After assessing his income a taxpayer can do tax planning in the month of March related to the eligible investments. An Assessee after assessing his income should plan how much to invest in the insurance policy, Public provident fund, Sukanya Samriddhi Yojana, medical insurance, donation etc. Certain exemption in income tax is available on payment basis only An Assessee can’t claim certain Payment done after the month of March.
income taxpayer should do the following payments before March ends :
An Assesses should pay the LIC premium, Sukanya Samriddhi Yojana, national saving certificate, equity-linked saving scheme, tuition fees for your children before 31st March.
Donation from his income earned of taxpayer wants to help others to claim tax benefits by paying the money to charitable trust registered under 80G.
The taxpayer can also claim tax benefits under section 80GGC by paying a donation to the registered political party before March ends.
A taxpayer can also claim the medical insurance benefits by taking the medical insurance policy in the name of his or his spouse and parents.
Tax Planning for Salaried Persons
A salaried person cannot do much on the savings part he can give a proper declaration to his employer and submit his investments proof before march closing. He should submit LIC, Home loan certificate, Tax saver mutual funds, Tax FDRs, Tuition fees, Medical insurance, Medical bills.
Tax Planning for thoce who have income from Business and profession
For the correct assessing of income tax a taxpayer should do the following check in the month of March.
1. Cross-check the bank books with the bank statement, made reconciliation if any
difference arises.
2. Check the cash book balance with physical cash.
3. Take the physical stock as on 31st March and verify the stocks in books of account
with the physical stocks available.
4. Passed the depreciation entry on fixed assets
5. An taxpayer should booked all his interest income
6. Cross check the debtor and creditor ledger.
7. Check the unnecessary entry Loan, Advance etc and try to close it before March
Check withdrawal from the banks by directors. As Dividend distribution tax will be
applied if the director withdraws more than remuneration.
8. An business and profession taxpayer can also claim the tax benefits of 175 percent
by making donation for scientific research trust.
If Books made cash basis:
Al Payables should be cleared before the march close otherwise no tax benefits he can claim.
LAST MINUTES ACTION IN THE MONTH OF MARCH
1 File the return for the last Financial year, Assessee can not file the return after the march
2 File the return for the last Financial year to save the penalty of RS 5000/-
3 Pay the Advance tax to minimise the interest expenses
4 Pay the LIC, PPF, Mediclaim etc Deduction amount of 80C before the march,
Compiled by team
Team Ca Sunil sakral
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#605, Aggarwal Millenium Tower 1
Netaji Subhash Place, Delhi- 110034
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