The new year is not far away now. Before the new year you must do some important work or else there may be trouble. In Corona crisis it is very important that you work under the economic plan, but before that you will have to deal with it. We are telling you about some such important works.
Must file income tax return
Before the new year, you must fill your income tax return within the stipulated time so that you do not have to pay the penalty. The deadline for individual taxpayers to file income tax returns for the financial year 2019-20 has increased to 31 December 2020.
The importance of health and life insurance has increased due to this Kovid-19. If you also have insurance, then check whether it is sufficient or not. People living in big cities should have insurance of at least five to 10 lakh rupees. Talking about life insurance, it should be 10 to 20 times of annual income.
Always keep your credit score better. Pay EMI on time. The bank or any financial company does not give loan if the credit score is bad. Due to poor credit score, credit card is also not made. Always keep an eye on credit score.
You should think about loan refinancing. This will reduce the loan burden on you and will also save a lot of money. For this, you should ask your bank to give you a loan at a lower rate, or transfer your loan to the bank where the loan is available at a cheaper rate.
Significantly, during the corona virus epidemic, the government and RBI had given the option of loan moratorium (installment exemption) for six months to provide financial help to the people. At the same time, all banks have also made loan rates cheaper.
Choose one in the new and old tax system
In the Budget 2020, taxpayers were given relief on the income tax front. A new tax system was announced during the budget. This system is optional, you have the option that you will pay tax according to the old tax system or according to the new system this year. You have to decide this before the deadline.
Explain that in the new tax system, the tax rate has been reduced to 10 percent on annual income ranging from five to 7.5 lakh rupees. The rate of income tax has been reduced to 15 percent for those with annual income ranging from 7.5 lakh to 10 lakh rupees.
Those earning between 10 and 12.5 lakh rupees will now be taxed at the rate of 25 percent and those with income from Rs 12.5 lakh to 15 lakh rupees. The tax rate will be 30 percent on income above 15 lakh.