As we step into September, it’s crucial to be mindful of important dates, especially when it comes to tax matters. Keeping these dates on your radar can save you from the headache of facing penalties and late charges later down the road. Here’s a rundown of September Tax Essentials key dates to remember:
1. Advance Tax Payment: When it comes to taxation, the “pay-as-you-earn” principle is pivotal. Waiting until the eleventh hour, like the annual deadline of July 31st, to calculate your tax dues isn’t the smartest approach. Instead, it’s advisable to pay your taxes as they become due. The government mandates the collection of taxes in advance through quarterly installments throughout the financial year. These installments are divided into four parts:
15% by June 15th
45% by September 15th
75% by December 15th
100% by March 15th of the financial year
For instance, if you’re employed and have additional income sources such as fixed deposits, it’s essential to settle your advance tax installment before September 15, 2023. Similarly, if your income comprises capital gains, rent, or fixed deposits, alongside your salary, you’re also obliged to pay advance tax on those earnings. Advance tax becomes applicable when the payable amount for a financial year exceeds Rs 10,000.
Sujit Bangar, the founder of Taxbuddy.com, stresses the significance of adhering to the most critical deadline in September: “The advance tax installment due before September 15 is of utmost importance. Missing this deadline triggers the calculation of interest at a rate of 1 percent per month on the unpaid tax liability, based on the estimated income for the financial year 2023-24.”
Tax Audit Report: Another pivotal date to engrave in your memory is September 30th, the deadline for submitting your tax audit report. Tax audits become mandatory when your turnover crosses the Rs 50 lakh mark.
This step is crucial to avoid penalties incurred for failing to complete the tax audit within the stipulated timeframe. Penalties can amount to 0.5 percent of the turnover or gross receipts, or a maximum of Rs 1.5 lakh, whichever is lower. Yeeshu Sehgal, Head of Tax Market at AKM Global, explains, “The Tax Audit Report under section 44AB of the Income-tax Act, 1961, for the assessment year 2023-24, applies to corporate taxpayers or non-corporate taxpayers who are required to submit their tax return of income by October 31, 2023. The deadline for this report is September 30, 2023.”
Deposit of TDS/TCS: If you’re responsible for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), remember that the due date for depositing TDS for the month of August is September 7th. TDS is deducted when you receive income, while TCS is collected when you make payments.
By keeping these vital dates in mind and staying well-informed about your tax responsibilities, you can navigate the financial landscape smoothly, ensuring that you avoid unnecessary penalties.
