ATTENTION TAXPAYERS!! POINTS TO BE TAKEN CARE OF BEFORE 31 ST MARCH 2019

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ATTENTION TAXPAYERS!! POINTS TO BE TAKEN CARE OF BEFORE 31 ST MARCH 2019

ATTENTION TAXPAYERS!! POINTS TO BE TAKEN CARE OF BEFORE
          31 ST MARCH 2019

 

As the financial year 2018-19 is about to end, there are some points which needs to be taken care of. The following article is divided into 5 parts namely:

  1. Accounting Related
  2. Goods and service Tax (GST)
  3. Tax Deducted at Source (TDS)
  4. Advance Tax
  5. Miscellaneous

Accounting Related:

  1. Analysis of long outstanding debtors, which should be classified as bad debts.
  2. Provisions should be made for all expenses, such as Telephone expenses, electricity expenses, rental expenses etc.
  3. In case of unsecured loans, interest should be booked on accrual basis.
  4. Depreciation to be charged in books of accounts as per Companies Act, 2013 / Income Tax Act,  1961, as applicable.
  5. In case of Fixed Deposits, Interest certificate should be obtained from the bank and interest should be booked on accrual basis.
  6. Cash in hand balance in books as on 31.03.2019, should be an appropriate amount. Any excess cash should be deposited in Bank account.
  7. Physically verify and value inventories/stock as on 31st March 2019, for valuing in books of accounts.
  8. Foreign debtors & foreign creditors should be re-valued at exchange rates as at 31st March 2019.
  9. Confirmations to be obtained from respective debtors / creditors / parties to whom loans given / taken, for outstanding balance, so that accounts can be reconciled.

Goods and Service Tax (GST):

  1. Pending GST liabilities to be taken care of.
  2. Reconcile the Cash ledger, Credit Ledger and Liability ledger on GSTN Portal with books of accounts.
  3. GST Department has also given last chance to rectify mistakes relating to GST Returns of FY 2017-18 & ITC for that year, till 31st March 2019. Hence, same should also be taken care of while filing GST Returnsof March’ 2019.
  4. Prepare GST Reconciliations – between GSTR 1, GSTR 3B and books of accounts & ITC availed in GSTR 3B, accounted in books of accounts and reflecting in GSTR 2A.

 

Tax Deducted at Source:

  1. TDS deduction on Salaried employees to be considered before crediting salary for month of March’ 2019
  2. Analyze expense on which TDS has not been deducted, and deduct & deposit TDS thereon, with interest.
  3. TDS Receivable should be reconciled with Form 26AS, and Form 16A shall be obtained from respective persons for all quarters.
  4. Prepare TDS payable reconciliations between books of accounts and Form 26Q/24Q/27Q and make relevant revisions, if required.

 

Advance tax:

  1. 100% of Advance Tax for the year is to be paid till 15th March 2019, as reduced by amount of advance tax paid in earlier installments.
  2. If in case you have not paid any Advance tax during whole financial year, you are advised to pay at least 90% of your advance tax liability, latest by 31st March 2019, in order to avoid Interest for default in payment of Advance tax u/s 234B of Income Tax Act, 1961.

Interest u/s 234C will continue to be levied.

Miscellaneous:

  1. Individuals are advised to make investments under LIC , Fixed deposits, Mediclaim, etc, if they want to claim deductions under Section 80C / 80D / etc.
  2. Salaried Individuals are advised to submit all investments proofs (Housing loan certificates , Mediclaim and LIC receipts, house rental receipts for claiming HRA, proofs of any other investments done, etc) to their employers, so that TDS can be deducted accordingly.

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