Important financial deadlines in 2021

The Most Important financial deadlines in 2021 that you must know

1.    10th January 2021: Income Tax Return filing deadline for salaried individuals

If an individual still has not filed their Income tax return (ITR) for Financial Year 2019-2020, then the individual has time till 10th January 2021 to file it without paying any late filing fees. The government in a press release held on 30th December 2020, had extended the last date of filing ITR for those individuals whose accounts are not needed to be audited. Largely, these taxpayers file their IT returns using either form ITR-1, ITR-2, or ITR-4, as applicable. However, missing this due date would cost an individual Rs 10,000 as a fine.

2.    15th January 2021: The due date to submit a tax audit report

The government had extended the due date to submit several audit reports under the Income-tax Act which includes the tax audit report as well as reports related towards international and specified domestic transactions for the Financial Year 2019-2020 to 15th January 2021, from the earlier deadline of 31st December 2020

3.    31st January 2021: Due date to file a declaration under Vivad Se Vishwas Scheme

31st January 2021, is the deadline for filing declaration under the Vivad Se Vishwas Scheme. The scheme has been announced in Budget 2020 in order to settle the income tax disputes as well as lessening the pending income tax litigation.

4.    15th February 2021: Income Tax Return filing due date for specified individuals

15th February 2021, is the deadline for filing ITR for taxpayers whose accounts are needed to be audited or those who are needed towards submitting a report under section 92E of the Income-tax Act. A report under section 92E is required to be submitted if international/specified domestic financial transactions were undertaken during Financial Year 2019-2020.

5.    28th February 2021: Due date for submission of life certificate for pension

In order to provide relief to senior citizens, the government had extended the last date for submitting pension life certificates from the usual due date of 30th November 2020, to 28th February 2021.

Pensioners must ensure that their life certificate is submitted within this date so that they continue receiving pension without any break. If the life certificate is not submitted, then the pension sum would not be paid to the pensioner.

6.    15th March 2021: Due date for making advance tax payments

Effective from 1st April 2020, dividend income had become taxable in the hands of an individual recipient. The dividend income is taxable at the income tax slab rates applicable to the individual's income. Furthermore, TDS is applicable if the dividend income surpasses Rs 5,000 in a fiscal year.

Thus, if an individual has received substantial dividend income in Financial Year 2020-2021, it is likely that the individual is liable for making advance tax payments as well. Advance tax liability arises if the predictable total tax liability (net of TDS) surpasses Rs 10,000 in the relevant fiscal year. In the event the advance tax payments are not made on or before 15th March 2021, then penal interest would be applicable.

7.    31st March 2021: PAN-Aadhaar linking last date

The government had extended the last date to link PAN with Aadhaar from 30th June 2020, to 31st March 2021. According to current law, if PAN is not linked with Aadhaar by the last date, then a person’s PAN would become inoperative. Once a person’s PAN becomes inoperative then you shall not be able to quote your PAN for financial transactions.

Though, once the inoperative PAN is linked with the Aadhaar number, then a person’s PAN would become operative from the date of linking.

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

31st March 2021, is the deadline for availing of the tax benefit under the LTC Cash Voucher Scheme. The scheme has been announced by the government back in October 2020 in order to incentivize employees to use their unclaimed Leave Travel Allowance (LTA) sum to increase consumer demand. The scheme was first declared for employees of the central government. It was later extended towards the employees of the non-central government like those in the private sector as well as PSU employees.

According to the scheme, an employee is needed to spend three times the sum deemed as LTA fare, on goods and services attracting GST of 12% or more.

9.    31st March 2021: Revised/belated Income Tax Return filing due date for Financial Year 2019-2020

If a person (whose accounts are not needed to be audited) had missed the last date of filing income tax return for Financial Year 2019-2020, that is, 10th January 2020, then he/she could file a belated ITR by 31st March 2021. One must remember that if you are filing a belated return then the person would have to pay a late filing fee of Rs 10,000. Though, for small taxpayers, with income up to Rs 5 lakh, the late filing fee must not surpass Rs 1,000.

Other than filing belated returns, any individual who has made errors at the time of filing their original ITR for Financial Year 2019-2020 could revise their tax return by 31st March 2021.

10.    31st March 2021: Due date to complete tax-saving exercise for Financial Year 2020-2021

You must complete your tax-saving exercise for the financial year 2020-21 by the last date, that is, 31st March 2021, because missing this last date would mean missing the opportunity towards reducing your tax liability for the financial year 2020-21.

11.    31st March 2021: Due date to make payment under Vivad se Vishwas Scheme

If you file or had filed a declaration for the resolution of a dispute under the Vivad se Vishwas Scheme on or before 31st January 2021, then the due date to make the payment under the scheme is 31st March 2021.

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

The government, under the Atmanirbhar Bharat Package, had declared the Emergency Credit Line Scheme on 13th May 2020. The scheme provided fully guaranteed as well as collateral-free loans towards various entities which include individuals who want to avail loans for business purposes.The deadline of availing the benefit under the scheme is 31st March 2021

13.    31st March 2021: Due date to avail Special Festival Advance Scheme

The government had declared an interest-free advance of Rs 10,000 towards government employees. The advance given would be recoverable in a maximum of 10 installments. The due date for availing of the Special Festival Advance is 31st March 2021.

14.    31st March 2021: Availing benefit of credit subsidy under PMAY

31st March 2021, is the deadline towards availing the benefit of credit subsidy under Pradhan Mantri Awas Yojana (PMAY). The scheme offers credit-linked subsidies, subjected to terms and conditions, on home loans towards middle-income groups having annual income between Rs 6 lakh and Rs 18 lakh.

15.    30th June 2021: Deadline towards availing tax sop on purchase of the new house

The government had declared an income tax sop for new home buyers making a primary purchase of a residential house for a rate up to Rs 2 crore. According to the announcement, the government had hiked the acceptable differential (for income tax purposes) between sale/purchase agreement value as well as circle rate from 10% to 20%. The benefit is available till 30th June 2021.

16.    31st July 2021: Income Tax Return filing due date for Financial Year 2020-2021

31st July 1, 2021, is the due date of filing Income Tax Return for individual taxpayers. While filing Income Tax Return for Financial Year 2020-2021, taxpayers have the option of selecting between the existing tax regime and the new concessional tax regime. If a taxpayer selects the new tax regime, then the taxpayer would need to fill an additional form while filing their Income Tax Return.

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Author:

eStartIndia Team