CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26940 Points)

01 April 2010  


Importance of 31st March in Income Tax /service Tax.

Income tax,service tax ,Vat and many other taxes are assessed  on the Financial year basic so in Tax system 31st March has a Major landmark date not only due to closing of the Financial year but also due to various due date correlated with the end of financial year i.e 31st march.I have given few major issue related to 31st March.

Dis allowance due to non payment of TDS:

As we have discussed in earlier post that as per section 40(a)(ia) ,if TDS is deductible on interest,royalty, commission,brokerage,fee for professional services, or on contract or has deducted on or before 28.02.2009

should have been deposited by 31st march 2009,otherwise deduction against these expenses will be allowed in the year of payment of Tds .

But in Budget 2010 it is proposed that Tds deductible in a Financial year can be deposited by the due date of Income tax return of that Financial year. Means if TDS is deducutible in Fy 2009-10 then you can deposit the TDS By 31.07.2010 or 30.09.2009 as the case may be

However Finance Bill 2010 is yet to be passed and still this change is a proposal only ,so as per present act ,Tds deductible up to February 2010,should be deposited by March 31,2010.
Further if you missed the 31st March deadline and Finance Bill is passed as it is proposed then you can pay Tds upto return due date to claim the expenses in FY 2009-10.

Due date for payment of Tax Deducted on 31st March.: 
Normally TDS due date are 7th of succeeding Month .But when TDS is deducted on provisions made on last day of the Financial year (31st march) then tds payment due date is 31st may of succeeding year .(for due dates of Tds read here)

Return for assessment year 2009-10
If you have not filed your Income Tax return
 for the Previous year 2009-10,then go far it before 31st march 2010 without penalty after this date penalty upto 5000 can be imposed.(read details from here )

Savings For Financial year:
 If are planning to save tax u/s 80C or 80D(check details) or other section then purchase Tax saving instruments like,NSC,PPF ,Lic receipt before 31St March so that you can take maximum benefit provided under these heads.

Service Tax /excise Duty Due dates:
 Due date to deposit Service Tax collected in month is 5th of Next month but due date to deposit tax collected in the month of  March ,is 31 march itself.. In case of service tax can be deposited .

How to pay Service Tax/Excise duty Online

Last date to Submit Audit Report Mvat :
 last date for submission of Audit Report in Form-704 for the period 2008-09 is the 31st March 2010

Last Date to deposit Advance Tax :31st March 2010 is Last date to deposit your advance tax for Financial year 201o .If advance Tax is not deposited by this date then you have to pay interest u/s 234B.