The importance of 31st March

31st March is an important date if you earn salary. Our incomes are taxed from one financial year to another. A tax return is filed for your total income earned from 1st April 2014 to 31st March. Its ok, if you haven’t yet filed a tax return, we can help you prepare and file it.

Why file a tax return?

Returns for financial year 2015-16, shall be filed in July of 2016. But if you have earned income from salary and other sources in any past financial year, make sure you submit a return. Where your income from salary, interest or any other source exceeds Rs 2,50,000 in total – a return must be filed. There are some other reasons where tax filing may be mandatory – read here.

With roughly 3 weeks to go for this crucial date, we’ve put together a few things you must keep in mind –

  • Last chance to file tax returns for 2013-14 – If you have not filed your tax return for financial year 2013-14(assessment year 2015-16); the last date to do so is 31st March 2016. Returns may not be accepted by the tax department post this date.
  • File return for 2014-15 and avoid penalty – Even though you may have fully paid your tax dues for financial year 2014-15, you must file a tax return if you have taxable income i.e. you earned more than Rs 2,50,000. Delay in filing may attract penalty of Rs 5,000, if your return is filed after 31st March.
  • Be compliant – The tax department receives an AIR (annual information report) from fund houses, financial institutions and banks, with details of your investments and transactions. Several taxpayers who did not file their tax returns timely received compliance notices from the tax department. Filing a return has several advantages too – may be required at the time of taking a loan or applying for a visa.
  • Make sure your tax dues are paid – Although returns for financial year 2015-16 are due later in the year, your income tax for this year must be paid in full before 31st March 2016. Though TDS is deducted on salary; sometimes, tax due arises when you include interest income or any other income in your return. Delay in paying your tax dues after 31st March 2016, may attract penal interest.

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One Response to The importance of 31st March

  1. eFiling Plus | submit 1099 online March 8, 2016 at 8:02 pm #

    Filling of income tax is very important. Aside from the fact you’re showing how much can you contribute to the country’s progress, it also helps you avoid not being penalized for not declaring how much you earned. I’m a tax payer so I know how it feels every time this date arrives.This is an important matter especially for fresh graduates who just made it to the cut. Great read! Hoping some of your readers will find this useful!