1. Deadline for Advance Tax Payments

Under Sections 207-208 of the Income Tax Act, taxpayers with an annual tax liability exceeding ₹10,000 are required to pay advance tax. If not already settled, the full advance tax for FY 2023-24 must be paid by March 31, 2024, to avoid interest penalties. This date also marks the deadline for advance tax payment for individuals under Sections 44AD/44ADA for the fiscal year 2024-25.

2. Implementation of Section 43B(h) from Finance Act 2023

Effective April 1, 2024, this section requires timely payments to micro and small enterprises within the agreed 15 or 45 days. Non-compliance for FY 2023-24 may result in the denial of the related expenditure. Taxpayers should ensure all dues to such enterprises are cleared promptly to prevent financial discrepancies.

3. Drafting Provisional Financial Statements

Taxpayers must prepare provisional profit & loss accounts and balance sheets by March 31 each year. Comparing these tentative figures with the previous year’s results and current-year budgets is essential for strategic planning and informed decision-making.

4. AIS / Form 26AS Reconciliation

It is important to reconcile TDS details with Form 26AS in the Annual Information System. Address any discrepancies, such as unreported TDS deductions. Ensure that significant transactions, including property purchases or sales over ₹30 lakh, are correctly recorded in AIS to avoid complications.

5. Tax-Saving Investments Deadline

For taxpayers opting for the old tax regime, March 31, 2024, is the last date to invest in instruments like LIC, PPF, ELSS, NPS, or make charitable donations to claim deductions under Sections 80C, 80D, 80G, and others for FY 2023-24.

6. PAN–Aadhaar Linking

Linking your PAN with Aadhaar is mandatory. Failure to do so can lead to penalties, inability to file ITR, or other legal complications. An unlinked PAN may also become invalid, causing issues in financial transactions.

7. Updated ITR Submission Extension

Taxpayers can file revised returns for FY 2020-21 (AY 2021-22) up to March 31, 2024. This extension is useful for correcting errors or filing returns missed during the original deadline.

8. Planning for Long-Term Capital Gains

Consider strategic selling of investments with unrealized long-term capital gains as of March 31, 2024. Limiting gains to ₹1,00,000 annually can help defer taxes and potentially reduce overall tax liability.

Compliances Under GST / Indirect Tax

1. Annual Book Reconciliation for GST / TDS

All taxpayers must reconcile accounting records with GST and TDS returns to correct discrepancies. Key reconciliations include:

• Matching GSTR-1 with GSTR-3B

• Aligning GSTR-1 with E-way bills

• Verifying Input Tax Credit (ITC) against GST returns

Accurate reconciliation prevents errors and avoids potential financial losses.

2. GST LUT Submission for 2023-24

Taxpayers engaged in exports or supplies to SEZ units must file a Letter of Undertaking (LUT) by March 31, 2024, for the period April 1, 2024 – March 31, 2025. The LUT, submitted via Form RFD-11 on the GST portal, enables exporters to benefit from tax exemptions in the upcoming fiscal year.

3. Opting for GST Composition Scheme (CMP-02) for FY 2024-25

Eligible taxpayers can opt for the GST Composition Scheme, simplifying compliance by filing quarterly returns instead of monthly returns. To enroll, Form CMP-02 must be submitted by March 31, 2024, making the scheme effective from April 1, 2024.
Eligibility criteria include:

• Turnover limit of ₹1.5 crore

• No ability to charge GST from customers

• Forfeiture of Input Tax Credit (ITC)

• Payment of taxes at a nominal rate

4. Mandatory E-Invoicing for Certain Taxpayers

From April 1, 2024, businesses with a turnover exceeding ₹5 crore in FY 2023-24 are required to generate electronic invoices (e-invoices) for all transactions. This measure enhances transparency and streamlines GST compliance.