To provide relief against covid-induced financial stress, the govt has been announcing economic stimulus packages, involving relief measures for various sectors of the economy as well as for the common man. In the realm of personal finance too, these measures were taken in many forms too, such as deadline extensions, loan moratorium etc. Due to such extensions, money-related deadlines have now shifted forward from their original dates. Given below is the list of eight tasks you need to check off your money to-do list by June 30, 2020.
The original deadline to link the two documents was March 31, 2020 and now stands postponed to June 30, 2020. If your PAN has not been linked with Aadhaar by this date, your PAN will become invalid and when this happens, you will face difficulty in conducting those financial transactions where you need to quote/show your PAN. Linking your PAN with Aadhaar is also a pre-requisite for filing income tax returns. According to chartered accountants, an individual cannot file his/her ITR without linking the two.
If you were running around looking to invest so as to reduce your tax outgo earlier this year, you must be relieved now. The deadline to finish the tax-saving exercise for financial year 2019-20 has also been extended from March 31, 2020 to June 30, 2020. So if you are yet to complete your tax-savings investments, make necessary expenditures, i.e. invest under section 80C or in health insurance premiums as they are eligible for deduction under section 80D etc., you can do the same by June 30. Tax-saving investments and expenditures made between April 1, 2019 and June 30, 2020 will qualify for income tax deduction for FY 20
19-20.
The deadline to file belated and/or revised income tax returns for the financial year 2018-19 also stands extended to June 30, 2020. March 31, 2020 was the original deadline, as per income tax laws. If a taxpayer fails to file the belated and/or revised ITR by the deadline, he/she will not be able to file his/her tax return for FY 2018-19 at all, unless asked to do so by the income tax department itself.
The government, via an ordinance dated March 31, 2020, extended the deadline for employers to issue Form-16 to their employees from June 15, 2020 to June 30, 2020 for FY 2019-20. Form-16 is a certificate needed for taxation, precisely for TDS from salary. It contains all the details of the tax deducted by your employer during the financial year along with total salary and other allowances paid to you. You will need Form-16 while filing ITR.
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If you have any small savings scheme accounts such as PPF, which require minimum annual deposits/investments to be made in them, you will be penalised on not depositing such amount and your account will become inactive. Good news is that the Department of Post has allowed investors to make the mandatory minimum deposits in such schemes for financial year 2019-20 up to June 30, 2020, instead of the former March 31, 2020. Also, if you were unable to make deposits in your recurring deposit account with the post office for April and May 2020 due to the lockdown, you have time till June 30, 2020 to do so without any penalty and revival fees.
If your Public Provident Fund (PPF) and/or Sukanya Samriddhi Yojana (SSY) accounts have matured on March 31, 2020 and you were hoping to extend them but couldn’t due to the lockdown, then you have time till June 30, 2020. This too has been declared by the Department of Post via a circular, saying that the forms to extend PPF/SSY accounts can now be submitted till June 30, 2020.
As per the rules of the Senior Citizen Savings Scheme, a retiree between 55 and 60 years of age is allowed to invest in the scheme, provided such investment is made within one month of receiving retirement benefits and the amount does not exceed such benefits. To provide relief to such retirees who retired between February and April 2020, the government has relaxed the time limit for investing retirement benefits in the SCSS account to June 30, 2020.
The Central Board of Direct Taxes (CBDT) has stated that it will allow Form 15G/Form 15H submitted by taxpayers for FY 2019-20 to remain valid till June 30, 2020 for FY 2020-21. So if you need to submit these forms for lower or nil tax deduction from their income can submit it by the first week of July 2020 as well for FY 2020-21, i.e the current financial year. Get the form ready by first week of July.
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