Financial Deadlines to meet in 2020

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Financial Deadlines to meet in 2020

Although it has just been one week into the new year, financial deadlines are already around the corner. The year 2020 has its own set of dates and financial commitments which we have listed it down, so that you don’t forget.

For availing interest subsidy on home loans under PMAY

The deadline to avail benefits under Pradhan Mantri Awas Yojana (PMAY) for the middle-income group is on March 31. According to the PMAY details, people falling under the middle-income group I & II (MIG – I & II) can avail the benefit of credit subsidy which is available on purchasing a house subjected to certain terms and conditions.

Under the PMAY scheme, categories are divided on the basis of the annual household income. The MIG – I household’s income lies between Rs. 6 – 12 lakh. This category can avail credit subsidy of 4%, while MIG – II are those whose household income lies between Rs 12 – 18 lakh. They can avail a credit subsidy of 3%.

For Investing in PMVVY

For senior citizens, the deadline for availing benefits of Pradhan Mantri Vaya Vandana Yojana (PMVVY) also falls on March 31. This pension scheme offers a guaranteed payout of pension at 8.0 – 8.30% for a span of 10 years, which is higher than the rates provided by other banks and post-office deposit schemes. One can invest up to Rs 15 lakh in this particular scheme.

For filing revised ITR and belated ITR

The deadline for filing of income tax return (ITR) for the FY 2018-19 is March 31. Miss this deadline and you won’t be able to file your ITR unless the income tax department asks you to do so.  This is also the deadline if you want to file a revised ITR for FY 2018-19. If you think that you have made a mistake in your original ITR, then you can rectify that by filing a revised ITR by March 31.

Depositing TDS on rent with the government

If you are living in rented accommodation and paying a rent of Rs. 50,000 or more per month, then you are required to deduct TDS on the rent paid as per income tax rules. You are required to do this every month or at the end of the financial year. In order to avoid penalty and interest, it is mandated to deposit the TDS amount with the government within 30 days from the end of the month in which the deduction is made.

Financial deadlines to meet in 2020
Financial deadlines to meet in 2020

Deadline for linking of PAN with Aadhaar

Post multiple extensions, the new deadline to link the PAN card with your Aadhaar Card has been extended to March 31. Failing to do so will result in your PAN card becoming ‘inoperative’, though the government is yet to specify what is meant by an ‘inoperative PAN card’.

Tax-saving related investments

In order to avoid paying higher taxes, it is imperative to complete investments that provide tax benefits before March 31. It is essential that you make investments in specified financial instruments under section 80C or other expenses to save on tax under the Income Tax Act.

Collect TDS certificates

Salaried taxpayers need to receive their Form 16 (TDS certificate) from their employers. Similarly, if you have invested in fixed deposits through banks, then you need to collect a TDS certificate (Form 16A) from your bank for filing ITR for the relevant financial year.

Your employer and bank will give you TDS certificates after June 15. Collect it without fail, as these TDS certificates will help you make sure that the TDS deducted on your behalf has been deposited against your PAN card.

Deadline to file ITR for FY 2019-20

The deadline for filing income tax return by individuals and HUFs for the current financial year is July 31, unless any extensions are provided by the government. You may invite a penalty if you avoid this particular deadline.

Investment Proof submission

If you are a salaried individual, then your company will require the submission of proof of investments, rental agreements, or other documents. These need to be submitted to the HR or finance department of your company, in order to avoid excess TDS deduction from your salary.

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