Arjuna (Fictional Character): Krishna, the financial year 2024-25 is about to end, and the new financial year is about to start. How should a taxpayer prepare himself for this year's march ending?
Krishna (Fictional Character): Arjuna, the month of March is very important for all Taxpayers. In our Country, the Financial Year from April to March is applicable for all Tax Laws. That's why Books of Accounts are prepared for the period of April to March.
Arjuna (Fictional Character): Krishna, which are the important tasks of income tax which should be done before march end?
Krishna (Fictional Character): Arjun, following are the things to keep in mind-
1. Furnishing of an updated return of income for the Assessment Year 2022-23: In Income tax, 31st March 2025 is the last date to file updated return, if taxpayer has made errors or omission in their original or revised return for FY. 21-22.
2. Investment for Deduction: If deduction u/s 80 ( for eg. 80C, 80G) is to be claimed in Income tax for F.Y. 2024-25, then every taxpayer should verify the limits of Income tax and their tax liability and should invest, donate, etc. before 31st March 2025.
3. TDS on Salary: Salaried Employee should give the details of Investments and deductions to Employer to avoid excess TDS deduction in the month of March.
4. Annual Information Statement (Form 26AS): Every Taxpayer should download Form 26AS and verify TDS deducted/TCS collected. Similarly, taxpayers should also verify the Income as mentioned in 26AS and AIS(Annual Information Statement) with Books of Accounts. Also check the SFT transactions like purchase of mutual funds if the aggregate amount is Rs. 10 lakhs or more in a financial year, purchase or sale of immovable property if transaction value or valuation by Stamp Valuation Authority is Rs. 30 lakhs or more, etc are reflecting in the Form 26AS or not.
5. Form 15 G/ H: The taxpayers who have income from interest only and it is less than the basic exemption limit, then they can file manually or online in Form 15 G/ H.
6. Booking of Losses: Taxpayers whose shares are in red, especially those who have not booked capital losses, should ensure they are properly record and book capital losses before 31st March. As these losses can be adjusted against taxable capital gains or carried forward for up to 8 years to set off against future gains.
7. Deduction for statutory dues: If the taxpayer has cash basis accounting system and he wants to claim the deduction of the statutory dues paid, then he must make the payment of said dues before 31st March.
8. Closing Stock Verification: All the taxpayers should do the verification of Stock at the year end. Along with that, verification of immovable property should also be done and match them with book value. If it will not match, then prepare the reconciliation statement.
9. Comparative Balance sheet and Profit and loss A/c: Taxpayers should prepare Comparative Balance sheet and Profit and loss A/c for the year. So that they will come to know the total turnover, Profit - loss, Expenditure, etc. Similarly, check the accounting ratios also.
Arjuna (Fictional Character): Krishna, what should one learn from this?
Krishna (Fictional Character): Arjuna, timely planning is essential for taxpayers. Those who have financial obligations must make payments before March 31st. Also, accounting provisions for different taxes must be completed within the financial year. Proper planning ensures a smooth tax filing process and avoids last-minute hassles. So, complete all pending tasks before March ends and welcome the new financial year with a clean slate!
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