Compliances by every Individual #taxpayers before 31.3.2023

Hi Everyone, Welcome back to Tax Destination! We are now approaching end of Financial year and new Financial year will begin on 1st April 2023. However, we need to do some compliances before this Financial year ends. Let's look at the most important one.

Linking PAN Card with Aadhar

Section 139AA of the Income Tax Act provides that every individual who has been allotted a Permanent Account Number (PAN) as on the 1st day of July, 2017, and who is eligible to obtain an Aadhaar number, shall intimate Aadhaar number in the prescribed form and manner. In other words, such persons have to mandatorily link their Aadhaar and PAN before the prescribed date.

 As per the Income-tax Act, 1961, it is mandatory for all PAN holders who do not fall under the exempt category to link their PAN with Aadhaar before 31.3.2023. From 1.04.2023, the unlinked PAN shall become inoperative.

Prerequisites for availing this service:

Aadhaar PAN linkage is not done before 31/03/2023

Valid PAN

Aadhaar number

Valid mobile number

Step-by-Step Guide:

Step:1

Payment of applicable fee either on e-Filing Portal using “e-Pay Tax” service or if bank account is not authorised for payment through e-Pay tax, then payment to be done through Protean (NSDL) Portal under major head (021) and minor head (500).

Step:1(a)  Visit e-Filing Portal Home page and click on Link Aadhaar in Quick Links section. Alternatively, login to e-filing portal and Click on Link Aadhar in Profile Section.

Step:1(b) Enter your PAN and Aadhaar Number

Step:1(c) Click on Continue to Pay Through e-Pay Tax

Step:1(d) Enter your PAN, Confirm PAN and any Mobile number to receive OTP

Step:1(e) Post OTP verification, you will be redirected to e-Pay Tax page.

Step:1(f) Click on Proceed on the Income Tax Tile.

Step:1(g) Select AY (2023-24) and Type of Payment as Other Receipts (500) and Continue

Step:1(h) Applicable amount will be pre-filled against Others and click Continue

Step:2

Submit the Aadhaar PAN link request on e-Filling Portal, either immediately if payment is made through e-Pay Tax service or after 4-5 working days of making of payment if payment is done on Protean (NSDL).

Step 2 (a): Go to e-filing portal home page and click on Link Aadhaar under Quick links.

Step 2 (b): Enter the PAN and Aadhaar and click on Validate.

Step 2 (c): Enter the mandatory details as required and click on Link Aadhaar.

Step-2(d) Enter the 6-digit OTP received on mobile no. mentioned in the previous step and click on Validate.

Step:2(e) Request for link of Aadhaar has been submitted successfully, now you can check the Aadhaar-PAN link status.

Updated Return for FY19-20

ITR-U is the tax return form through which the assessee can file an updated return. The assessee can file tax returns for assessment year two years prior to the current assessment year. 

Therefore, taxpayer can file an updated return for AY: 2020-21 in FY: 2022-23 to offer to tax additional income. The last date to file the updated return i.e. ITR U for FY 2019-20 is 31st March, 2023. Through this form, assessee can disclose its additional income after paying an additional 25 percent/ 50 percent of the total additional income disclosed.

Tax saving scheme

31st March is the last chance to invest in Tax saving schemes to save taxes. All the tax saving investments done till 31st March 2023 will be eligible for deduction. So, please ensure you do all the necessary investments for claiming deduction under section 80C/80D/80CCD before the 31st March 2023. You can refer to one of our blogs where we have discussed various investment options available. 

Pradhan Mantri Vaya Vandana Yojana

PMVVY was introduced in 2019 for senior citizens which helps them to provide a regular stream of income. The scheme application is accepted till 31 March, 2023. This scheme offers a l guaranteed monthly income to senior citizens. 

Anyone above the age of 60 years can participate in the scheme. The policy has a tenure of 10 years from the date of issue. The total amount for all the policies held under the PMVVY scheme by a senior citizen cannot exceed Rs. 30 Lakh (earlier it was 15 Lakh).