Eight money related tasks to complete before June 30, 2020

05/06/2020

Eight money related tasks to complete before June 30, 2020

Over the past two months, the government has announced a slew of relief measures to reduce the impact of the coronavirus-induced lockdown on various sections of the economy. The government has also announced measures to make it easier for the common man to shoulder financial responsibilities.

Some of these include extensions of financial deadlines such as the tax-savings deadline, deadline for linking of PAN with Aadhaar etc. Many of these deadlines fall on the last day of June.

Here is a look at eight money-related tasks you should complete before June 30, 2020.

Linking of PAN with Aadhaar

The government has extended the deadline to link PAN with Aadhaar to June 30, 2020 from March 31, 2020. If your PAN is not linked with Aadhaar by the deadline set for this, then your PAN will become invalid. With an invalid PAN, you will not be able to conduct financial transactions wherever quoting of PAN is mandatory. Further, you also have to link your PAN with Aadhaar to file your tax return.

Tax-saving investments for FY 2019-20

The deadline to complete the tax-saving exercise for the financial year 2019-20 has been extended from March 31, 2020 to June 30, 2020.

Therefore, if you still have not completed your tax-savings investments/expenditures, i.e., made investments eligible under section 80C, expenditure on health insurance premium eligible for deduction under section 80D etc., then you can do the same by June 30, 2020.

The latest income tax return (ITR) forms notified for FY 2019-20 contains a 'Schedule DI' so that taxpayers can provide information regarding investments and expenditures related to tax-savings made during the extended period, i.e., between April 1, 2020 and June 30, 2020.

Filing belated/revised ITR for FY 2018-19

The deadline to file belated and/or revised ITRs for FY 2018-19, too, has been extended to June 30, 2020.

As per income tax laws, March 31, 2020, was the deadline for filing belated and/or revised ITR for FY 2018-19. If the belated and/or revised ITR was not filed by this deadline, then the individual could not have filed his/her tax return for FY 2018-19 unless the tax department had asked the individual to do so.

Therefore, if you have not filed your ITR for FY 2018-19, make sure you do it before the deadline of June 30.

Form-16 from employer

According to tax experts, the government has, via an ordinance dated March 31, 2020, extended the deadline for employers to issue Form-16 (certificate for TDS from salary) from June 15 to June 30, 2020 for FY 2019-20.

Form 16 is a TDS certificate which contains all details of the tax deducted by your employer during the financial year and total salary and other allowances paid to you. Having a Form 16 makes it easier for employees to file ITR.

Depositing money in small savings scheme accounts

If you have opened any small saving scheme account such as PPF which mandates minimum annual deposits/investment in the account then you will be penalised if do not invest the minimum amount required. For instance, there is a penalty for not depositing the minimum amount every year in Public Provident Fund and Sukanya Samriddhi Yojana accounts if you have opened any. If do not make any deposit during the financial year, then your account will become inactive.

However, the Department of Post has allowed investors to make the minimum deposits required in such schemes for the financial year 2019-20 up to June 30, 2020, instead of the earlier deadline of March 31, 2020. Consequently, investors have time up till June 30 to comply with rules and avoid penalty for not investing the minimum amount due for such small savings schemes for the financial year 2019-20.

Similarly, if you have not deposited money in your recurring deposit account with post office for the month of April and May 2020 due to lockdown, then you have time till June 30, 2020 to deposit money without any penalty and revival fees.

Extension of PPF/SSY account

If your PPF and/or SSY account has matured on March 31, 2020, and you were hoping to extend it but couldn't do so due to the lockdown, then you have time till June 30, 2020. The Department of Post, in a circular dated April 11, has said that forms to extend PPF/SSY accounts can be submitted up till June 30, 2020.

Opening of Senior Citizen Savings Scheme account

To provide relief to individuals aged between 55 years and 60 years who have retired between February and April 2020, the government has relaxed the time limit for investing their retirement benefits in the Senior Citizen Scheme account to June 30, 2020.

As per the scheme rules, a retiree aged between 55 year and 60 years is allowed to invest in the SCSS scheme provided such investment is made within one month of receipt of retirement benefits and the amount does not exceed the retirement benefits.

Submitting Form 15G/Form 15H for FY 2020-21

The Central Board of Direct Taxes (CBDT) has stated that it will allow the Form 15G/Form 15H submitted by taxpayers for FY 2019-20 to remain valid till June 30, 2020 for FY 2020-21. So, those who are required to submit these forms for lower or nil deduction of tax from their income can submit it by the first week of July 2020, as well for FY 2020-21. Therefore, all those desirous of submitting Form 15G/H for current financial year should get ready to submit these forms after June 30 in the first week of July 2020.