List of 7 financial tasks to complete before June 30, 2020
In the wake of coronavirus, Finance Minister Nirmala Sitharaman extended the deadline of the financial tasks such as filing your income tax return to linking your PAN card with Aadhaar from March 31, 2020, to June 30, 2020. This extension was done to provide relief to the citizens amidst the countrywide lockdown and to contain the spread of the coronavirus disease. The deadline to the below-mentioned financial tasks has been extended from March 31, 2020, to June 30, 2020.
1- Link PAN Card to Aadhaar Card: The Income Tax Department of India issued an official notification to link PAN card to Aadhaar card before March 31, 2020. However, Finance Minister Sitharaman has extended this deadline to June 30, 2020. It is mandatory for all to link PAN card with Aadhar card otherwise PAN will become inoperative and the person can be penalized by the authorities for not quoting, furnishing or intimating PAN.
2- Vivad se Vishwas Scheme: The last date to avail of the Vivad se Vishwas Scheme been extended to June 30, 2020. Earlier, the deadline was April 1, 2020. In addition to this, no extra 10% payment will be charged.
3- File belated tax return: If you have not filed a tax return for the FY 2018-2019, then you can still file it before June 30, 2020. Earlier, the deadline was March 31, 2020.
4- Filing GST: The deadline for filing Goods and Service Tax (GST) has been extended to June 30, 2020, for the months of March, April and May keeping in view the deadly virus.
5- Health insurance for COVID-19: After WHO declared COVID-19 as a pandemic, health insurance against it will not only bear your medical expenses but will also give you a tax rebate up to INR 25,000. In case you buy health insurance for your parents, you will get an additional rebate of INR 25,000 and if one of them is a senior citizen then rebate can be availed up to INR 50,000. It must be noted that the deductions in the current FY can only be availed of if the health insurance was bought before March 31, 2020.
6- Invest in small savings schemes: Invest in fixed income options such as the National Savings Certificates and Kisan Vikas Patras, etc. These schemes are offering 7.9% and 7.6% interest rates respectively. Bond yields have dropped by 40 basis points in the last three months. A 10-year bond yield averages 6.3% interest rate since January 1, 2020. Thus, interest rates of small savings schemes can be expected to drop by 15-20 basis points from April 1, 2020.
7- Book profits in stocks and equity funds: Amid the COVID-19, markets are down, but many investors are expecting long-term capital gains. However, it must be noted that the long-term capital gains above INR 1 lakh in an FY are now taxable. However, it must be noted that the Financial Year has not been shifted and only the deadlines have been extended.
These were some of the financial tasks that an individual was supposed to complete before the March 31, 2020 deadline which is now extended to June 30, 2020, to contain the spread of the highly contagious virus. Finance Minister has extended the deadlines to provide relief to the people amidst the nationwide lockdown.