31st March represents as an end of the financial year in India. From 1st April onwards, the new economic policies are implemented as announced by the finance minister in the yearly budget in February. So that’s why there are some specific things you can do before the new financial year begins. To avail some tax benefits, deduction and get benefits on various government policies, you have to follow some rules and complete the tasks before the month ends.
File your pending returns:
File your Income tax return for AY 2016-17 and 2017-18 before 31st March 2018. If you have forgotten to file it earlier, this is your chance to file your belated tax returns. Pay your belated tax return for both the years by correctly calculating your tax liability and paying the taxes due along with the applicable interest. You can also revise your already paid taxes if you want to disclose unreported income, to claim expenses/ TDS credit, etc. Also in order to avoid any penalty or prosecution, IT department has announced the people to ‘come clean’ and file their revised or belated tax returns by 31st March 2018.
Invest under PPF:
PPF accounts are considered as a best way to save money to gain long term gains. The minimum and compulsory annual contribution under PPF is of Rs. 500. If you have a current PPF account then invest at least Rs. 500 before 31st March 2018.
Know your tax deductions:
You can avail tax deduction on your investments in financial year depending upon the type of investment you have done. You can avail deductions under section 80C, 80D, 80G etc. of Indian Income Tax Act.
Strategies your investments:
You can claim tax exemptions and deductions along with benefit of opportunity to earn returns on various investments. To avail maximum deductions you have to make appropriate investments before 31st March 2018.
Claim your reimbursements:
If you are a salaried employee and entitled to specific reimbursements like medical reimbursements, Telephone, leave travel, house rent allowance etc. then claim it soon. To avail tax deduction, you should submit proof of these expenses to your employers.
