As you approach the end of fiscal year 2023-24, it’s vital to keep on top of key financial duties to maintain the health of your personal finances. Being proactive is not just about good organization—it could also mean significant tax benefits and ensuring you remain compliant with fiscal responsibilities.
Often, last-minute rushes can lead to oversights and lost chances to optimize your financial profile. Make sure you attend to tasks such as reviewing investment portfolios, maximizing contributions to retirement accounts, and considering year-end charitable giving, as these can all influence your tax liabilities. Check if you’ve fully utilized any tax deductions or credits available, and confirm that all documentation for income and expenses are accurate and complete.
This is also a good time to reassess your budget, set financial goals for the new fiscal year, and ensure that estate plans and insurance coverages are up to date. Ticking these boxes will help you close out the fiscal year with confidence and set a solid foundation for the year to come. Remember, a bit of foresight now can lead to substantial benefits later, so don’t delay in addressing these important financial tasks.
File Updated Income Tax Returns
The importance of filing your income tax return cannot be overstated. If you have missed filing your returns for FY 2020-21, you have until March 31, 2024, to file an updated return. This provision is particularly crucial for those who may have inadvertently omitted income, taken incorrect deductions, or reported erroneous income details. The act of updating your return is not merely a compliance measure but also a remedial step to avoid possible penalties or notices from the tax department.
In filing the updated return, ensure all income sources are accounted for and the right tax deductions are claimed. It’s equally important to report any foreign assets or income if applicable, as such reporting is under increased scrutiny by the tax authorities. Review your Form 26AS, the annual consolidated statement of taxes deducted, and cross-verify it with your calculations. Accurate and timely submissions could spare you from unnecessary hassles during the year.
Maximizing Tax Savings
Another significant step is to maximize your tax savings by investing in eligible tax-saving instruments. These investments can reduce your taxable income and thereby your tax liability. The old tax regime offers a broad selection of deductions and exemptions under various sections. Hence, it is crucial to make any necessary investments before the deadline of March 31, 2024, to claim these benefits for the fiscal year.
Options like the Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), and term deposits with tax-saving features could be apt for diversifying your portfolio while saving on taxes. Furthermore, payments towards health insurance premiums, educational loans, and home loans can also yield deductions. Ensure you retain all relevant documentation to substantiate these claims in case of scrutiny from the tax authorities.
Issuance of TDS Certificates
Employers and organizations are required to issue TDS certificates for all deductions made towards salaries or specified payments. The deadline for the issuance of these certificates for tax deductions applicable to various sections for the month of January 2024 is another critical date to adhere to. Being diligent in collecting these certificates ensures that you can reconcile your deductions and have a smoother process in filing your tax returns.
Maintaining Minimum Balance in Savings Schemes
Schemes like the Public Provident Fund (PPF) or the Sukanya Samriddhi Scheme (SSY) mandate a minimum yearly deposit to remain active. Failing to invest the minimum amount could lead to penalties or the account being marked as inactive. Before the fiscal year concludes, assess your contributions and add funds if necessary to adhere to these requirements and to benefit from compounded returns.
Updating FASTag KYC
Remember, you’ve been given an extension until March 31, 2024, to update the KYC for your FASTag accounts. Overlooking this crucial step could make your FASTag invalid, causing travel hassles. Take advantage of the new deadline to meet KYC norms, either online or by visiting your service provider.
This crucial act of financial diligence is not only about compliance. By addressing these essentials by March 31, 2024, you shield yourself from financial blunders and are better prepared for the next financial year. It’s a proactive step that epitomizes the adage, “A stitch in time saves nine.” Ensuring your financial responsibilities are in order offers peace of mind and helps avoid future complications, so it is imperative to act promptly and update your information to continue enjoying smooth travel without disruptions.
