Non-compliance to lead to penalty
Income tax assessees have a little over three weeks to comply with three important requirements.
These compliances include depositing the final instalment of advance tax, the last opportunity to file the income tax return of fiscal year 2020-21 and linking of PAN (Permanent Account Number) with the unique identity number Aadhaar. While March 15 is the date for the first compliance, March 31 is the date for the remaining two.
According to Section 208 of the IncomeTaxAct 1961, every person whose estimated tax liability for the year is more than or equal to Rs. 10,000, is liable to payadvancetax.Those who are excluded from payingadvancetax are senior citizens who are above the age of 60, and those not having an income from business or profession.
One can pay theadvancetaxin four instalments by the 15thday of June, September, December and March. Fifteen per cent ofthe advancetaxis payable on or before June 15. By September 15, it should be 45 per cent of payment, less the amount already paid. By December 15, it should be 75 per cent ofadvancetaxless that already paid, and the balance amount by March 15. Non-payment ofany instalment of advancetaxwill invite interest.
The final deadline for filing ITR for FY21 (Assessment Year 2021-22) for individuals whose accounts need not to be audited was December 31. Now, if one has not filed yet, then he/ she will have one last opportunity to do so by March 31 with penalty. According to Sundara Rajan TK, Chairman & Managing Partner at DVS Advisors, the assessee needs to pay late filing fees under Section 234F of Rs. 5,000 ( Rs. 1,000 if the total income does not exceed Rs. 5 lakh) and interest under Section 234A.
PAN Aadhaar linkage
The 12th extension for linking PAN with Aadhaar will come to an end on March 31. Originally, it was mandatory to link Aadhaar with PAN from July 1, 2017. As on January 24, the total number of PANs linked with Aadhaar were 43.35 crore. The total number of PANs is estimated to be over 60 crore.
Rajan said non-linking will invite late fees under Section 234H: Rs. 1,000 payable while linking and penalty of Rs. 10,000 under Section 272B of the Income-Tax Act “PAN would become inoperative. It shall be deemed that he has not furnished, intimated, or quoted the PAN TDS/TCS at a higher rate. Transactions in the stock market may not be possible,” he said.