Income Tax Checklist FY 2019-20

Income Tax Checklist For FY 2019-20

As you all know that the end of the financial year 2019-20 is approaching. 31st March 2020 is an important date to remember for individual taxpayers in India. This date is the deadline for finishing all your financial obligations

Here is the list of a few things which you must finish before 31st March 2020 to save income tax for FY 2019-20.

Linkage of Aadhaar with PAN Number

➢ For i​ ncome tax return filing , the taxpayer must have linked his Aadhaar card with the PAN number. ➢ The taxpayer will not be able to submit his IT return if the Aadhaar number is not linked with the PAN number. ➢ So if you still have not linked your Aadhaar number to your PAN number, please get the same done before 31st March 2020.

Filing of Pending Returns

➢ If you have not filed the ​income tax return for AY 2019-20, then do it before 31st March 2020. Because after that you will not be able to file the ​income tax return for AY 2019-20. ➢ If you are thinking that you can file the income tax with the penalty after 31st March 2020, but you will not be able to do so even with the late penalties. ➢ So it is advisable that your pending​ i​ ncome tax filing​ ​ before 31st March 2020.

Calculation of GST Turnover

➢ If your total turnover for the financial year crosses ₹ 20 Lakhs. So if your total turnover is crossing ₹ 20 lakhs in the current financial year you must calculate that to determine the GST tax liability and filing an appropriate return. ➢ You can opt for the GST composition scheme if your turnover is less than ₹ 1 crore. If your turnover is higher than ₹ 1 crore you will not be able to opt for the GST composition scheme. ➢ GSTR-1 is applicable where the turnover is higher than 1.5 crore, then monthly GSTR-1 return needs to be filed. Otherwise, you can file quarterly returns.

Minimum Investment in PPF ➢ If you have a PPF account and want to take the tax benefit on the amount you have deposited in the PPF account during the financial year, then you must check that if you have invested the minimum investment amount of ₹ 500 in the PPR or not.

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➢ If you do not deposit ₹ 500 during the whole financial year, your PPF account will become inactive. you will also be not getting any tax benefits under section 80C of the Income Tax Act. ➢ So if you have the PPF account then you must deposit at least ₹ 500 during the financial year. The last date for depositing in the PPF account is 31st March 2020.

Submitting Investment Proofs to your Employer

➢ You need to submit all your actual investment proof to your employer so that your employer can calculate your tax liability on the salary paid to you and deduct the TDS accordingly ➢ If you don’t submit the investment proof to your employer, chances are there you may miss the benefit of tax exemption on your investment. ➢ Every employer is asking the employee to submit the actual investment proofs before 31st March 2020. Usually, it starts in the month of January every year.

Calculations of Deductions

➢ You must know that there is a certain investment that is exempted from your taxable income. These are investments done under section 80C, 80D, 80G, Section 24, etc. ➢ Calculate the amount that it should reach to its capping level of ₹ 150000 in order to get the tax exemption on your investment. ➢ This investment needs to be done on or before 31st March 2020 in order to get it eligible for the tax exemption.

Check your Form 26A

➢ Form 26A is the statement showing TDS and TCS amount deducted from your income. This is a consolidated statement that shows all your income from all the sources. ➢ So if you have forgotten to consider any of the income in your tax calculation, you can check in this statement. Such income is like earning interest in the fixed deposits.

So here is the Income-tax checklist for FY 2019-20. Ensure you have completed all the above activities in order to get the maximum tax benefit for the current year.

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