You can start the year by reviewing your tax planning for FY22-23 . First and foremost, note that the last date for furnishing the tax audit report is 15 January and that for verifying your belated/ revised ITR (income tax return) for FY21-22 is 31 January.
Come 1 February, do tune into the Finance minister Nirmala Sitharaman's budget speech to know if you are getting any tax relief for the next financial year. If you’ve left your tax saving investments to the last minute, with the March 31 deadline approaching, it’s time for you to act quickly on this front. Also, if eligible, you can apply for a higher pension. As per a recent Supreme Court judgement, eligible employees can make a higher contribution to their EPS (employee pension scheme) account. They can apply for this by 3 March.
Then, remember not to miss the PAN and Aadhaar linking deadline of 31 March. Failure to do so will make you PAN defunct. You need a PAN not only for filing your tax returns but for making investments too. Among other things, in April, remember to submit form 12BBA to claim exemption from ITR filing if you are a senior citizen aged 75 years and above, and earn only pension and FD interest income.
May is a good time to build a tax-saving investment plan for the year. Also, review nominations across your financial accounts, and your health and life insurance needs. In June, it’s time to focus on tax again – for example, 15 June is the deadline for first advance tax payment for FY23-24. As per the Income Tax Act, any individual (excluding senior citizens not having any income from business or profession) with an estimated tax liability of ₹10,000 or more in a year shall pay taxes in advance in the form of advance tax. With the 31 July tax filing deadline also approaching fast, get your documents in order for this annual exercise.
In August, get ready to start saving for upcoming festive sales. Follow this up with creating a budget for festive spending in October. In the meanwhile, don’t forget the 15 September deadline for second advance tax payment for FY23-24. In November, while you may be tempted to load on gold on Dhanteras, don’t let physical gold exceed 10% of your portfolio. Do remember to book flights and tour packages for your winter break to bag good deals. If you are a central government pensioner, remember to submit your life certificate by 30 November.
Finally, end the year with a review of your investment portfolio, apart from keeping an eye out for important tax deadlines.
