Long weekend cancelled for tax dept, market closed, banks open on March 30: How to plan your tax work?

As the financial year 2023-24 draws to a close, individuals must be preparing for several tax-related work. However, this year poses a unique situation with March 31 falling on a Sunday, and the preceding days comprising a long weekend due to Good Friday falling on March 29.

Despite this, the Income-Tax department has announced that it will not be observing this long weekend and will remain operational from March 29 to March 31 to facilitate the completion of pending tax-related tasks.

This decision comes as a relief for many taxpayers who might have been concerned about the limited timeframe to address any pending tax matters.

With March 31 being the deadline for various tax-related activities, including filing updated income tax returns (ITR-U) for the assessment year 2021-22 and making tax-saving investments, the extended working days will provide individuals with the opportunity to meet these obligations without undue stress.

However, with the stock market set to be closed during this long weekend, investors should adjust their trading strategies accordingly.

Additionally, banks will be open on Saturday, March 30, marking the fifth Saturday of the month, allowing individuals to carry out any necessary banking transactions.

March deadline also holds significance for those required to deduct tax at source (TDS) as they must file challan statements for tax deducted under specified sections for February by March 30.

Individuals filing updated income tax returns for FY20-21 must use the ITR forms notified for the respective assessment year along with the newly introduced form ITR-U.

Electronic filing is mandatory for them, with options for using Digital Signature Certificates (DSC) or Electronic Verification Codes (EVC), depending on the taxpayer's category.

Before delving into tax-saving investments, it's paramount for taxpayers to estimate their tax liability.

This involves factoring in unavoidable investments or payments eligible for tax deductions, such as EPF contributions, repayment of home loan principal and interest, NPS contributions within the salary package, term insurance plans, and HRA deductions.

Salaried individuals should carefully assess which tax regime — old or new — best suits their financial profile and invest accordingly.