Being Early Is The New Smart

While the deadline for individual taxpayers is 31 July which does seem far, one needs to start well ahead of time to avoid last minute misses and errors

- Aarti Raote

A new fiscal year commences with a lot of financial planning, but many seem to procrastinate when it comes to tax planning. It is of paramount importance to start preparing for your tax return filing for 2020-21 well ahead of time to avoid any last-minute errors and omissions. Always remember, a penny saved is a penny earned.

The deadline for individual taxpayers has been extended from 31 July to 30 September 2021 given the pandemic. However, in cases where the tax payable on the return i.e. selfassessment tax exceeds Rs 1 lakh, the deadline for tax payment remains should be paid by 31 July 2021 failing which interest will be triggered for late filing of the return.

Here are a few tips on how to get things right the first time itself and to avoid any errors that may result in revisions:

Register on Tax Portal: First-time taxpayers need to register on the portal using their Permanent Account Numbers (PAN). The tax portal provides important information on the status of return processing, demands and refunds, and pending actions for each taxpayer. It is also the repository of all returns filed. Additionally, it is necessary to link the Aadhaar number with the PAN to ensure that the PAN remains valid. This is mandated for all taxpayers.

It may be noted that the tax department would be soon launching a new e-filing portal and hence one would need to see if there is a change in the tax filing process.