Things to do before you say good-bye to FY14

As we are approaching towards the end of this financial year, there are certain things we should do before the year comes to an end. This article discusses all those things for the benefit of our readers.
Making investments in eligible items:

Please verify whether you have adequately paid/invested so as to be able to claim the benefits under Section 80 C, 80 D etc. In case you have yet not made your full investment, you can now invest the money either in PPF account or buy NSC as it is not advisable to invest in ELSS in lump sum at this moment. Please ensure that the sum is actually debited in your bank account so as to ensure that your claim is not jeopardized.
File pending IT - returns
Though the general due date of filing of Income Tax returns is 31st July of the year following the financial year, a few of you wouldn’t have been able to file the return by the due date and then must have forgotten the matter altogether. Please file your pending income tax return for the financial year 2012-2013 by 31st March 2014. In case you have taxable income and fail to file the returns for the financial year 2012-2013 by 31st March 2014, the assessing officer can levy a penalty of Rs. 5,000 for this default. However, the assessing officer can not do so without giving you an opportunity to explain the reason for such failure. As per the present tax laws, you can file income tax returns for two financial years at any given point of time, so in case you have not filed your income tax return for the financial year 2011-2012, you have the last chance to file this return by 31st March 2014. So those of you who have not filed their income tax returns for any of the two previous financial years should file these income tax return by 31st March 2014.
Payment of advance tax
Majority of the tax payers are salaried and their tax liability is discharged by the employer as the tax is deducted at source at the time of payment of the salaries and it is only the self -employed tax payers who normally have to pay advance tax. However even in case of salaried employees if you have any other taxable income for the year like capital gains, interest on fixed deposits etc. you have to pay advance tax on such income in case such income is not reported to your employer.
In cases of interest income, though the tax is deducted at source at the rate of 10% by the payers, you may still have to pay advance tax in case your applicable slab rate is more than 10%. In cases of sale purchase of any capital assets like shares etc. on which you are liable to pay tax, you are supposed to discharge this liability by way of payment of advance tax. Please note that you need not pay any advance tax in case you advance tax liability does not exceed Rs. 10,000/- for the year. Moreover in case you are a senior citizen and are not engaged in any business or profession, you need not pay any advance tax. In the above two cases the tax can be paid while filing your income tax return. Please note you are required to file the income tax return by the due date and pay the tax then. In case of delay, you will have to pay interest on amount of the tax payable.
In case you are liable to pay advance tax and fail to pay it fully, you may have to pay double interest, firsts for non payment of advance tax from the 1st day of April and secondly for filing of income tax return delayed beyond the due dates from the due date of filing of your return. You have to pay interest for non-payment of advance tax from 1st April of the next year till the taxes are actually paid.
Filing details of salaries received from earlier employer:
If you have worked with more than one employer during the previous year and you have not provided the details of salaries received from the previous employers to current employer, please provide the same to your current employer immediately so that the current employer can take the same into account. The same details have to be submitted to your employer in form no. 12B.
In case you do not do this now, you may get the shock when you are required to pay huge tax at the time of filing of your return of income. This happens because all the employers would have given you the benefits of initial exemption as well as deduction under Section 80 C thus resulting into deduction of lower tax as compared to your actual liability.
Please hurry up and at least do the things enumerated above so as to have peace of mind.

Things to do before you say good-bye!