There are some vital financial tasks which your clients must complete before March ends. Given below are the top 5 important things which must be finished before 31st March, 2020:
1. Compute earnings for the year:
Many clients are unable to calculate their total income for the year correctly. Financial advisors can guide them by asking them to check their earnings from all sources comprising of capital gains and interest on bank deposits, savings account. Inform clients that if their income is below Rs 5 lakh, they don’t have to pay taxes. Tax slabs are applicable if earnings exceed the Rs 5 lakh threshold.
2. File delayed ITR:
Returns for the financial year 2018-2019 had to be filed by 31st July 2019. However, if your clients have not filed their taxes yet, they have another chance to file belated returns till 31st March. As this is a late return, a delayed filing penalty could be levied.
3. Have sufficient health cover to combat Covid-19:
With Covid-19 being declared a pandemic by the World Health Organization (WHO), it has become critical to have adequate medical cover to tackle this fatal infection. Explain to clients that they can claim deduction for health insurance premium up to Rs 25,000 for themselves and their families. These deductions can be availed in the present FY if the policy is purchased before 31st March.
4. Linking of PAN to Aadhaar:
PAN cards might not work if they are not linked to Aadhaar before 31st March. Moreover, individuals may have to shell out Rs 10,000 as penalty if the linking is not done. Linking PAN to Aadhaar is a simple process and it can be done through SMS or by logging on to the IT department website.
5. Go for PM Vaya Vandana Yojana (PMVVY):
Compared to other pension plans which give annuity for life, the PMVVY is for a period of 10 years and offers guaranteed earnings to senior citizens. Experts believe that this scheme is the next best alternative for retired persons after the Senior Citizens’ Saving Scheme (SCSS). The last date to sign up for the PMVVY is 31st March.