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Financial deadlines – 2021

Deadline showing calendar and clock

At the start of 2021 let’s take out our calendars and mark all the financial deadlines so that we do not miss any and pay a huge penalty. This year is unique in the sense that we have quite a lot of deadlines postponed from 2020 to 2021 as a result of the pandemic.

Here is a list of financial deadlines for 2021 to mark in your calendar:

1) 10th January 2021: ITR filing deadline for salaried individuals

If you have still not filed your Income Tax Returns (ITR) for the financial year (FY) 2019-20, then you should ensure it is filed before 10th of January, 2021. Any delay in filing beyond this date will see you shelling out ₹10,000 as a penalty. Individuals will have to use ITR-1, ITR-2 or ITR-4 form as applicable.

2) 15th January 2021: The last date to submit the tax audit report

The deadline has been extended from the earlier deadline of 31st December, 2020 to 15th January, 2021. This is for the various audit reports under the Income-Tax Act including tax audit reports and reports related to international and specified domestic transactions for FY 2019-20.

3) 31st January 2021: The last date to file declaration under the Vivad Se Vishwas Scheme

The Vivad Se Vishwas Scheme was announced in Budget 2020 to settle income tax disputes and reduce the pending income tax litigation. The last date to file a declaration under this scheme is 31st January 2021.

4) 15th February 2021: ITR filling for specified individuals

Individuals whose accounts need to be audited or those who are required to submit a report under section 92E of the Income Tax Act have to do so before 15th February 2021. If there are any international/specified transactions undertaken during FY 2019-20, then a report under section 92E should be filed.

5) 28th February 2021: Submission of life certificate for pension

The deadline of 30th November 2020 has been extended by the government to 28th February 2021 in an attempt to help senior citizens. To ensure pensioners receive their pension without a break, they should submit their life certificate before 28th February 2021. In case the certificate has not been submitted, then pension would not be paid out to that particular person.

6) 15th March 2021: Advance tax payment

Dividend income has been made taxable in the hands of individual recipients since 1st April 2020. If one has received substantial dividend income in FY 2020-21, then a person is liable to pay advance tax as well. Advance tax liability arises if the estimated tax liability is more than ₹10,000 (net of TDS) in the relevant financial year.

Dividend income is taxable at the person’s applicable income tax slab rates. Further TDS is also applicable if dividend income is more than ₹5,000 in a financial year.

Penal interest will be applicable if advance tax is not paid within the due date.

7) 31st March 2021: PAN-Aadhar linking

In view of the effects of the pandemic, the government had extended the due date for linking PAN with Aadhar from 30th June 2020 to 31st March 2021. If your Aadhar is not linked with PAN, then the PAN becomes inoperative and cannot be quoted during any financial transactions. However, on linking the PAN will once again become operative.

8) 31st March 2021: Availing tax benefit under LTC Cash Voucher Scheme

In October 2020, the government announced a scheme to incentivize employees to use their unclaimed Leave Travel Allowance (LTA) to boost consumer demand. As per the scheme an employee is to spend three times the amount deemed as LTA fare, on goods and services that attract GST of 12% or more. The last date to avail the tax benefit under this scheme is 31st March 2021.

9) 31st March 2021: Revised/belated ITR filing for FY 2019-20

If an individual has missed the deadline of 10th January 2021 for filing ITR for FY 2019-20 then a belated return can be filed by 31st March 2021. However, a penalty of ₹10,000 has to be paid to file a belated return. However, the late filing fee cannot exceed ₹10,000 if the income does not exceed ₹5 lakhs. Even a correction to the original ITR of FY 2019-20 has to be filed within this date.

10) 31st March 2021: Complete tax saving exercise for FY 2020-21

If you wish to reduce your tax liability for FY 2020-21, then you have complete all tax saving activities before 31st March 2021.

11) 31st March 2021: Payment under Vivad Se Vishwas scheme

If you have met the deadline of 31st January 2021 to file a declaration under the Vivad Se Vishwas scheme, then the last date to make a payment under this scheme is 31st March 2021.

12) 31st March 2021: End of Emergency Credit Line Guarantee Scheme

Under the Atmanirbhar Bharat Package, the government had announced the Emergency Credit Line Guarantee Scheme. Entities and individuals wishing to avail loans for business purposes were allowed to do so without a collateral under this scheme. The benefit of this scheme cannot be availed beyond 31st March 2021.

13) 31st March 2021: Last date to avail Special Festival Advance Scheme

An interest-free advance of ₹10,000 was given to government employees as a Special Festival Advance in addition to the LTC cash voucher scheme. The advance will be recoverable in a maximum of 10 instalments. The last date to avail benefit of this scheme is 31st March 2021.

14) 31st March 2021: Last date to avail benefit of credit subsidy under PMAY

The Pradhan Mantri Awas Yojana (PMAY) scheme provides credit-linked subsidies, subject to T&C on home loans to middle-income groups having annual income between ₹6-₹8 lakhs. The last date to avail the benefit of this scheme is 31st March 2021.

15) 30th June 2021: Last date to avail tax sop on purchase of new house

The government announced an income tax sop for new home buyers for a residential house with a value less than ₹2 crore, provided this was a primary purchase. The acceptable differential( for income tax purposes) between sale/purchase value and circle rate has been hiked to 20% from 10% as per the announcement. The benefit can be availed until 30th June 2021.

16) 31st July 2021: ITR filing for FY 2020-21

Taxpayers have the option of choosing the existing tax regime or the new tax regime for FY 2021-21 while filing the ITR. An additional form will have to be filled if an individual chooses the new tax regime. The last date to file the ITR for 2020-21 without a penalty will be 31st July 2021.

Hope this extensive list has helped you set your financial deadlines for 2021 in order. It is very important to follow these financial deadlines to ensure we do not end up paying penalties and fines in 2021.

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