As the end of the fiscal year approaches, both business owners and individuals must take preventative steps to ensure tax compliance and financial stability. March 31st march an important deadline for several crucial tasks, especially from an income tax perspective. Keeping this in mind, we wrote an article in which we specified which duties must be completed by March 31st in order to avoid future problems.
Advance Tax Payment:-
Sections 207-208 of the Income Tax Act require taxpayers to pay advance tax if their tax liability exceeds ₹10,000 per financial year. If taxpayers have not paid advance tax by the due date, they can do so by March 31, 2024, to lower their interest liability. The 31st of March 2024 is also the deadline for taxpayers covered by Section 44AD/ADA to pay the full amount of advance tax for the financial year 2024-25.
Review AIS:-
Examine the 26AS in the Annual Information System to ensure that TDS is properly matched. Follow up with parties who deducted TDS but forgot to include it in their returns. Additionally, validate that transactions such as acquisitions or sales of immovable property exceeding Rs 50 lakhs are accurately represented in the AIS's Statement of Financial Transactions.
Investment for Deductions:-
This applies to those who chose the old income tax scheme. March 31, is the deadline for making all tax-saving investments, such as LIC premiums, Public Provident Fund, ELSS, National Pension Scheme, and donations, in order to claim deductions under sections 80C, 80D, 80G, 80GGB, and so on.
Updated ITR Filing:-
Taxpayers have an extension until March 31, 2024, to submit modified income tax returns for the financial year 2020-21 (Assessment Year 2021-2022). This deadline applies to persons who failed to file their taxes for fiscal year 2020-2021 or who need to amend any mistakes.
Fixed Asset Purchase for Business:-
Fixed assets can be acquired to be depreciated. Any fixed assets purchased on or before March 31st and used for business purposes are eligible for a depreciation deduction of at least 50% of the normal rate.
Conclusion:-
The month running up to March 31st provides an important chance for individuals and businesses to meet their income tax liabilities efficiently. Taxpayers can reduce risks, improve tax outcomes, and arrange for a smooth financial year by proactively addressing essential responsibilities such as filing returns, optimizing deductions, finalizing tax liabilities, and staying up to date on regulatory changes.
The above article is written by Mr. Sachin Vishwakarma & Reviewed by Mr. Suyash Tripathi.