Last-Minute Tax Planning? Don’t Miss These Crucial Tasks

As the financial year draws to a close, taxpayers need to act swiftly to ensure compliance with tax regulations.

March 31 marks the deadline for several tax-related activities, and overlooking them can lead to unnecessary complications.

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Here are four key tasks you should prioritize before the deadline:

1. Advance Tax Payment:

The deadline for the fourth installment of advance tax payment is March 15. Failure to meet this deadline results in interest charges on the outstanding tax amount.

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However, if you miss this date, you still have until March 31 to avoid further penalties by paying the due amount.

2. Tax Loss Harvesting:

Utilize the strategy of tax loss harvesting to offset losses incurred on certain stocks in your portfolio.

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For instance, if you’ve suffered losses on particular shares, consider selling them for tax planning purposes.

You can reinvest in these shares after a brief period, enabling you to set off long-term capital losses against profits from other investments, such as mutual funds.

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3. Submit Salary Proof and Tax Documents:

Ensure timely submission of documents such as proof for deductions under sections 80C and 80D, as well as details related to house rent allowance (HRA) and leave travel allowance (LTA), to your employer.

Failure to do so may result in the forfeiture of certain deductions, affecting your tax liability.

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4. Check the Annual Information Statement:

Review your Annual Information Statement carefully for any discrepancies in income or transactions.

If you identify any errors or inaccuracies, promptly notify the Income Tax Department to rectify the issues and avoid future complications.

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By addressing these critical tasks before the March 31 deadline, taxpayers can mitigate potential tax-related challenges and ensure compliance with regulatory requirements.

Stay proactive and organized to navigate the tax season smoothly.

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