Due to novel coronavirus pandemic, various financial deadlines have been extended well into 2021 by the government. Here are the 16 financial deadlines that you should not miss in the new year i.e. 2021.
It is the new year and like every year, we list out all the important financial deadlines you should not miss in the new year – 2021. However, unlike previous years where there were not more than 10 important financial deadlines to remember, in 2021, there are about 16 deadlines and dates you should know about. This is because thanks to the novel coronavirus pandemic, many important financial deadlines have been extended well into 2021.
Here is a list of all the money-related deadlines and dates you should make a note of in your calendar for the year 2021.
1. January 10, 2021: ITR filing deadline for salaried individuals
If you still have not filed income tax return (ITR) for FY 2019-20, then you have time till January 10, 2021 to file it without paying any late filing fees. The government in a press release dated December 30, 2020, has extended the due date of filing ITR for those individuals who accounts are not required to be audited. Generally, these individuals file their tax return using ITR-1, ITR-2 or ITR-4 form, as applicable. Missing this deadline will cost you Rs 10,000 as a penalty.
2. January 15, 2021: The last date to submit tax audit report
The government extended the deadline to submit various audit reports under the Income-tax Act including the tax audit report and reports related to international and specified domestic transactions for the FY 2019-20 to January 15, 2021, from the earlier deadline of December 31, 2020.
3. January 31, 2021: Last date to file declaration under Vivad Se Vishwas Scheme
January 31, 2021, is the last date to file declaration under the Vivad Se Vishwas Scheme. The scheme was announced in the Budget 2020 to settle the income tax disputes and reducing the pending income tax litigation.
4. February 15, 2021: ITR filing deadline for specified individuals
February 15, 2021, is the last date for filing ITR for individuals whose accounts are required to be audited or those who are required to submit a report under section 92E of the Income-tax Act. A report under section 92E has to be submitted if international/specified domestic financial transactions have been undertaken during FY 2019-20.
5. February 28, 2021: Deadline for submission of life certificate for pension
To provide relief to senior citizens, the government extended the deadline for submitting pension life certificates from the usual deadline of November 30, 2020, to February 28, 2021.
Pensioners should ensure that their life certificate is submitted by this date so that they continue receiving pension without a break. If the life certificate is not submitted, then the pension amount will not be disbursed to the pensioner.
6. March 15, 2021: Last date for making advance tax payments
Effective April 1, 2020, dividend income has become taxable in the hands of an individual recipient. The dividend income is taxable at the income tax slab rates applicable to the person’s income. Further, TDS will be applicable if the dividend income exceeds Rs 5,000 in a financial year.
Thus, if you have received substantial dividend income in FY 2020-21, it is likely that you are liable to make advance tax payments as well. Advance tax liability arises if the estimated total tax liability (net of TDS) exceeds Rs 10,000 in the relevant financial year.
If the advance tax payments are not made on or before March 15, 2021, then penal interest will be applicable.
7. March 31, 2021: PAN-Aadhaar linking deadline
The government extended the deadline to link PAN with Aadhaar from June 30, 2020, to March 31, 2021. As per current law, if PAN is not linked with Aadhaar by that date, then your PAN will become inoperative. Once your PAN becomes inoperative you will not be able to quote your PAN for financial transactions.
However, once the inoperative PAN is linked with the Aadhaar number, then your PAN will become operative from the date of linking.
Also Read:How to link PAN with Aadhaar
8. March 31, 2021: Availing tax benefit under LTC Cash Voucher Scheme
March 31, 2021, is the last date to avail the tax benefit under the LTC Cash Voucher Scheme. The scheme was announced by the government back in October 2020 to incentivise employees to use their unclaimed Leave Travel Allowance (LTA) amount to boost consumer demand. The scheme was first announced for central government employees. It was later extended to non-central government employees like those in the private sector and PSU employees.
As per the scheme, an employee is required to spend three times the amount deemed as LTA fare, on goods and services attracting GST of 12% or more.
9. March 31, 2021: Revised/belated ITR filing deadline for FY 2019-20
If an individual (whose accounts are not required to be audited) has missed the deadline of filing income tax return for FY 2019-20, i.e., January 10, 2020, then he/she can file a belated ITR by March 31, 2021. Do keep in mind that if you are filing a belated return then you will have to pay a late filing fee of Rs 10,000. However, for small taxpayers, with income up to Rs 5 lakh, the late filing fee cannot exceed Rs 1,000.
Other than filing belated returns, those who have made errors at the time of filing their original ITR for FY 2019-20 can revise their tax return by March 31, 2021.
Also Read:Complete ITR filing guide
10. March 31, 2021: Deadline to complete tax-saving exercise for FY 2020-21
You should complete your tax-saving exercise for the financial year FY 2020-21 by the deadline, i.e., March 31, 2021, because missing this deadline would mean missing the opportunity to reduce your tax liability for FY 2020-21.
11. March 31, 2021: Last date to make payment under Vivad se Vishwas Scheme
If you file or have filed a declaration for the resolution of a dispute under the Vivad se Vishwas Scheme on or before January 31, 2021, then the last date to make the payment under the scheme is March 31, 2021.
12. March 31, 2021: End of Emergency Credit Line Guarantee Scheme
The government, under the Atmanirbhar Bharat Package, announced the Emergency Credit Line Guarantee Scheme on May 13, 2020. The scheme provided fully guaranteed and collateral-free loans to various entities including individuals who want to avail loans for business purposes.
The last date of availing the benefit under the scheme is March 31, 2021.
13. March 31, 2021: Last date to avail Special Festival Advance Scheme
Apart from the LTC Cash Voucher Scheme, the government also announced an interest-free advance of Rs 10,000 to government employees. The advance given will be recoverable in a maximum of 10 instalments. The last date to avail the Special Festival Advance is March 31, 2021.
14. March 31, 2021: Availing benefit of credit subsidy under PMAY
March 31, 2021, is the last date to avail the benefit of credit subsidy under Pradhan Mantri Awas Yojana (PMAY). The scheme provides credit-linked subsidies, subject to terms and conditions, on home loans to middle-income groups having annual income between Rs 6 lakh and Rs 18 lakh.
Also Read:All you need to know about PMAY
15. June 30, 2021: Last date to avail tax sop on purchase of new house
The government announced an income tax sop for new home buyers making a primary purchase of a residential house for value up to Rs 2 crore. As per the announcement, the government has hiked the acceptable differential (for income tax purposes) between sale/purchase agreement value and circle rate from 10% to 20%. The benefit is available till June 30, 2021.
16. July 31, 2021: ITR filing deadline for FY 2020-21
July 31, 2021, is the last date of filing ITR for individual taxpayers. While filing ITR for FY 2020-21, taxpayers have the option of choosing between the existing tax regime and the new concessional tax regime. If a taxpayer chooses the new tax regime, then he/she will have to fill an additional form while filing their ITR.