With so many deadlines to keep track of, it’s easy to miss one or two. If you’re an investor or taxpayer who’s missed the March 31st deadline, don’t worry, you’re not alone.
However, missing a deadline can have serious consequences, especially when it comes to financial matters. So, what should you do if you’ve missed the deadline?
In this blog, we’ll explore some options available to you in April and beyond. Whether you’re a seasoned investor or new to the tax game, we’ve got you covered. So, let’s dive in!
There were several important things that investors and taxpayers were expected to do before the March 31st deadline, such as linking their PAN with Aadhaar, making advance tax payments, filing updated ITRs, making tax-saving investments, and engaging in tax harvesting transactions. Unfortunately, if you missed these deadlines, there’s not much you can do about it now. Nevertheless, you can still take some steps to ensure that you stay on track financially. Let us explore some of these options in more detail so you can make informed decisions.
Linking PAN with Aadhaar
To provide taxpayers with some additional time, the deadline for linking PAN with Aadhaar has been extended until June 30, 2023. The earlier deadline was March 31, 2023. This is positive news for PAN holders who still need to link their PAN with their Aadhaaras they can do so without facing any adverse consequences until the new deadline. The Income Tax Department’s online website offers a convenient way to complete the PAN-Aadhaar linking process. It’s important to act quickly to avoid potential penalties or other issues down the line.
Starting July 1, 2023, failing to link your PAN with your Aadhaar will have serious consequences. Your PAN will be considered “inoperative,” and you’ll face penalties as a result. If your PAN does become inoperative, you can reactivate it by informing the designated Income Tax authority and paying a fee of Rs 1,000 after linking it with your Aadhaar within 30 days. However, it’s important to note that there will be no refunds provided for inoperative PANs, and no interest will be paid during the period of inoperability. Additionally, a higher rate of TDS and TCS will be levied, making it even more compelling to take action before the deadline.
Payment of Advance Tax
You must pay advance tax before the financial year ends in 4 installments: 15th June, 15th September, 15th December, and 15th March. If advance tax is not paid according to this schedule, then you will be liable to pay Interest as per sections 234B & 234C of the Income Tax Act, 1961. Under section 234B, if less than 90% of the tax is paid before the end of the financial year, interest at the rate of 1% per month on the shortfall amount will be charged. This is for “Default in payment of Advance tax.” Similarly, under section 234C, Interest at the rate of 1% per month on the shortfall amount is payable if the tax is not paid as per the installment schedule. This is for “Deferment in Installments of Advance tax.” So do not wait any further and pay your tax dues as early as possible to avoid an increase in penal interest.
Tax-Saving Investments
If you missed making tax-saving investments for the last financial year, it’s important to learn from that mistake and take action now. With the current financial year in full swing, it’s a good idea to start planning your tax-saving investments early. This will not only ensure that you don’t miss any deadlines but will also give you enough time to research and choose the right investments that suit your financial goals and risk appetite. One of the best ways to do this is to set aside a fixed amount of money each month towards your tax-saving investments. By starting early and being consistent, you can take advantage of the power of compounding and potentially earn higher returns over the long term. Remember, the first month of the financial year is a great time to get started and make sure you’re on track to meet your tax-saving goals.
Conclusion
In conclusion, missing deadlines for financial matters can have serious consequences, but it’s not the end of the road. If you’ve missed important financial tasks like linking PAN with Aadhaar or making tax-saving investments, you can still get back on track. By understanding the available options and taking action as soon as possible, you can avoid penalties and ensure that your finances remain in good shape. With the right planning and a commitment to financial responsibility, you can build a solid foundation for a secure and prosperous future.
Disclaimer: The views expressed in the blog are purely based on our research and personal opinion. Although we do not condone misinformation, we do not intend to be regarded as a source of advice or guarantee. Kindly consult an expert before making any decision based on the insights we have provided.
