As the new financial year begins, you will have the responsibility of a new task with you for complying with the tax norms.
While you should ideally start tax planning from the first month of the fiscal year, you need to ensure you review your portfolio, income and expenses over the period as you progress.
In addition to tax planning, multiple tax compliances are required to be fulfilled.
In this blog, we seek to provide you with a detailed understanding of tax compliances for fiscal 2020 that may come your way.
Also, a monthly break up has been given, so that you have a handy deadline chart when it comes to tax matters.
Tax Calendar – Fiscal 2020
|Month||Tax compliance required|
|First and foremost, don’t make the mistake you probably made in fiscal 2019. Don’t wait for December to plan taxes when your HR asks you for proofs. Plan your tax early, plan them now. This shall help you save your tax burden, that may occur during the last quarter and it will also help you understand your financial health as you move ahead in the year.|
|Are you holding shares in the physical form? Unfortunately, you can’t sell them anymore. Get the shares dematerialized now to prevent losses.|
|Do you have high-interest income? Submit the declaration to your bank of interest income on or before April 30, 2019. Use Form 15G/H for filing the same. While form 15H is for senior citizens, 15G is for everyone else.|
|The month starts with Akshaya Tritiya. An auspicious day to buy assets. Invest in gold via gold funds instead of hoarding physical gold.|
Be rationale and Be responsible for the nation. You can also look to start investing in financial assets such as mutual funds. Remember asset is an asset, doesn’t matter if its gold or shares of a company or mutual funds.
|Are you a Non-Resident Indian (NRI)? If yes, apply for a permanent account number (PAN) immediately before May 31, 2019.|
Otherwise, you can’t file tax. Submitting a PAN card is mandatory for financial transactions carried out by NRI with a value of Rs 2.5 lakhs or more during the financial year 2018-19.
|Keep an eye out for form 16. Form 16 details the tax deducted at source (TDS) by your employer. It also contains the salary breakup for the fiscal and would be a critical document for filing tax.|
|Whoa. Its already first quarter end of fiscal 2020. Remember to deposit 15% of the tax liability with the government on or before June 15, 2019. The first installment of advance tax is required to be deposited if the income (other than salary income) greater than Rs 10,000 in a financial year.|
|July||File the income tax with the department of income tax, the government of India on or before July 31, 2019.|
|August||A patriotic month, where you feel free as India celebrates its Independence day on August 15.|
Think if you are financially free and if not, take measures to attain that freedom. Think of securing your family by opting for term insurance, consider creating an emergency fund corpus to withstand any unforeseen situation that may arise, or start investing in mutual funds, if you are looking at wealth accumulation for different financial objectives such as buying a car, children’s education, a down payment of a new home, etc.
In simple words, retrospect and find out if you have done enough to meet your financial responsibilities.
|September||Time flies. You are already in the second quarter end of the fiscal.|
Deposit the second installment of your advance tax if your income (other than salary income) is higher than Rs 10,000 for the fiscal. In the second installment deposit 45% the tax liability.
|Festive season begins. As you celebrate Navratri followed by Diwali and Chath Puja among others, keep a check on your finances.|
Do not overspend and increase the burden of EMI. Beware from the festive offers notably the No-cost EMI offers as it leads to overspending.
|Check your portfolio. Make it a habit to assess your asset allocation twice a year. Get rid of the investments that don’t make sense and remain invested in fundamentally sound ones. Have a check if your investments are on track to help you achieve your financial objective.|
|Start preparing the list of investments made during the year as the HR would knock the door soon to get your proofs.|
Check if all the benefits under section 80C, 80D, 80E and other relevant sections of the IT Act are availed. If not, plan for utilizing the missed portion to reduce your tax liability.
|Did you visit abroad for work? If yes, you must have paid taxes. Claim the foreign tax credit for taxes paid abroad using form 67.|
|December is an excellent time to review the expenses for the fiscal and also assess the savings and investments. This shall help you give a clear picture of what to expect. This is an excellent time to review your expenses in the year gone by. Prepare a budget for the new year and stick to it.|
|December 15: Third installment (75% of tax liability) of advance tax is due if your income (other than salary income) is higher than Rs 10,000 in a financial year.|
|January||It’s time to organize investment proofs.|
You will be required to arrange for rent receipt, medical bills, donation receipt, investment in mutual funds, shares, provident fund, etc.
The HR will need this for processing your tax liability for the fiscal and accordingly process your salary for the last quarter.
|February 1: Time for Union Budget. Keep an eye on how it can impact you for direct tax and otherwise.|
|March 15: Third installment (100% of tax liability) of advance tax is due if your income (other than salary income) is higher than Rs 10,000 in a financial year.|
|March 31: Double check the investments, tax liability, TDS paid and make last minute changes if required.|
Soon we shall come with the GST calendar for fiscal 2020, until then,
Happy Tax Planning,
Disclaimer: The views expressed in this post are that of the author and not those of Groww