In India we follow financial year for the purpose of reporting and as a bifurcation between 2 years in relation to any financial law i.e. Income tax, GST, Banking etc. In India the Financial year starts from 01st April of each year and ends at 31th March of next year. In India there is no option for any entity to change it’s financial year or reporting period. So, now that we have entered new financial year i.e. Financial year 2024-25, let’s have a look at few things we need to keep in mind with the closure of this financial year.
Under Income Tax Act:
To check if your last year’s (i.e. FY 2023-24) business or professional turnover exceed Rs.1 crore or Rs.50 lakh respectively and if yes then you will be liable to deduct TDS from FY 2024-25. Hence, you should apply for TAN.
To check if your business turnover has exceeded Rs.10 crore in FY 2023-24. If yes, then you would be liable to deduct TDS u/s 194Q and TCS u/s 206C(1H).
While making any payment of tax after 01.04.2024 related to FY 2023-24 remember to choose Self assessment tax (300).
While making any payment of tax after 01.04.2024 till 31.03.2025 related to FY 2024-25 remember to choose Advance tax (100).
Remember to link Aadhar and PAN card for smooth filing of Income tax return and claim refund if any excess TDS deducted or TDS deducted at higher rate.
To check if you have made payment of MSe (i.e. micro and small enterprise) in relation to section 43B(h) for invoices issued after 15.02.2024, otherwise you won’t be able to claim it as expenses in Income tax return for FY 2023-24.
Now you cannot file updated return for FY 2020-21.
Now, you cannot receive reassessment notice (other than search cases), where 148A notice has not been already issued and where total income escaping assessment is below Rs.50 lakh for AY 2020-21.
To check if any of the minor child has become major during the year under consideration file his/ her Income tax return if applicable.
To check if you have become senior citizen during the year under consideration and plan taxes accordingly.
To check if you have crossed the threshold limit for eligibility of Section 44AD or 44ADA and you are required to maintain books of accounts or get your accounts audited.
Under GST
To check if you are now liable for generating E-invoice based on your previous year’s turnover. Now E-invoice has been started from taxpayer having turnover of more than Rs.5 crore.
Further, starting from 1st April 2024. Kindly change your invoice series which could be a combination of a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year;
File LUT in case of export of goods or service for FY 2024-25
In case anyone has any other important points which one should keep in mind while starting new financial year we would request you to kindly mention it below in other to help others.
