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:
- Accounting Related
- Goods and service Tax (GST)
- Tax Deducted at Source (TDS)
- Advance Tax
- Analysis of long outstanding debtors, which should be classified as bad debts.
- Provisions should be made for all expenses, such as Telephone expenses, electricity expenses, rental expenses etc.
- In case of unsecured loans, interest should be booked on accrual basis.
- Depreciation to be charged in books of accounts as per Companies Act, 2013 / Income Tax Act, 1961, as applicable.
- In case of Fixed Deposits, Interest certificate should be obtained from the bank and interest should be booked on accrual basis.
- 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.
- Physically verify and value inventories/stock as on 31st March 2019, for valuing in books of accounts.
- Foreign debtors & foreign creditors should be re-valued at exchange rates as at 31st March 2019.
- 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):
- Pending GST liabilities to be taken care of.
- Reconcile the Cash ledger, Credit Ledger and Liability ledger on GSTN Portal with books of accounts.
- 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.
- 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:
- TDS deduction on Salaried employees to be considered before crediting salary for month of March’ 2019
- Analyze expense on which TDS has not been deducted, and deduct & deposit TDS thereon, with interest.
- TDS Receivable should be reconciled with Form 26AS, and Form 16A shall be obtained from respective persons for all quarters.
- Prepare TDS payable reconciliations between books of accounts and Form 26Q/24Q/27Q and make relevant revisions, if required.
- 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.
- 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.
- Individuals are advised to make investments under LIC , Fixed deposits, Mediclaim, etc, if they want to claim deductions under Section 80C / 80D / etc.
- 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.