Each time at the end of a Financial Year the management of companies and other businesses are very stressed with the closing of the books of accounts and preparation of various statutory documents. Trying to cover up any last minute mistakes, scared of getting caught up with some scrutiny, trying to keep their business in compliance. Apart from companies and businesses the end of a financial is also crucial for an individual. Usually busy looking after their business, entrepreneur over look their individual taxation requirements. The basic condition to be fulfilled by an individual is filing their Income Tax Returns and paying their personal tax dues.   Have you filed your Tax Returns in the past years? ITR filing is important even if you do not have any taxable income, or all your income is exempt. ITR is a statutory document, and may be asked as a proof even while opening a new bank account, applying for an overdraft facility or any other such basis thing.      

Alok Patnia explains 3 things to do before 31st March 2014

[embedplusvideo height=”400″ width=”600″ editlink=”http://bit.ly/1jg7RGc” standard=”http://www.youtube.com/v/PxA3spFz9cE?fs=1″ vars=”ytid=PxA3spFz9cE&width=600&height=400&start=&stop=&rs=w&hd=0&autoplay=0&react=1&chapters=&notes=” id=”ep4064″ /]   Importance of 31^st March from a taxation POV

Last date for online filling of ITR for the FY 2011-12

The Income Tax department provides an extended time for filing a belated ITR till 2 years after the end of the particular Financial Year. Yes, you still have time to file your return till 31^st March 2014 but beyond 31^st March 2014 you will never be able to file online return for FY 2011-12 Accordingly anytime after the lapse of 2 years from the end of the Financial Year the only option would be to file a manual return. Well filing a manual return today is another problem in itself, as it brings various issues along with it and they need to be taken care of till the manual return is processed. You must have read about the latest case going on in the high court of Chennai on their chief ministry for not filing ITR about 20 years back. Save yourself from the hassles and file your ITR when you still have time. A penalty of Rs 5000 may be imposed u/s 271F by the AO if the return of income is not filed within the end of the relevant assessment year. Please note that such penalty can only be imposed if you have taxable income for the FY – 2012-13 but failed to file your income tax return within 31^st march 2014.Avoid penalty for the FY 2012-13 NO penalty can be imposed by the IT Department once you have filed your return. So no need to panic if you miss the 31st July Deadline, you can still file your returns on or before 31st March 2014 (for Financial Year 2012-13) i.e. Assessment Year 2013-14 without a penalty.

Tax planning for the FY – 2013-14

If you haven’t done your tax planning for the Financial Year – 2013-14 already, you are about to run out of time. The last date Tax planning means to make adequate investments and expenditure to minimize your taxes for a particular year. The last date to do so for the FY – 2013-14 is 31^st March 2014. This is not mandatory, however an individual whose income crosses the exemption limit should do tax planning. We all make investments right? Then why to miss an opportunity to save taxes too! Tax planning for the financial year 2013-14 For Example: To claim deduction under section 80C the investments needs to be made before 31^st March 2014. In case the investments are made after 31^st March, such investments would be considered in the next Financial Year.

Payment of Advance Tax

Salaried employees generally don’t need to worry about advance tax provisions as their taxes are paid in the form of TDS. However, if a salaried individual has any other income which is not disclosed to the employer, then the excess taxes will be paid in the form of advance tax. The provision of advance tax was introduces for Self employed persons, as no TDS is deducted in their case. Last date for the payment of advance tax for is 31^st March, beyond this date various interests are charged on the outstanding tax liability. Don’t ignore your individual taxation requirement, if get stuck on an individual level, who will take care of your company? ____________________________________________________________________________________________________ Feel free to write to us,at [info@taxmantra.com] or call us at +91 88208208 11.