Arjun (Fictional Character): Krishna, everyone is taking precautions due to the Corona Virus. What precautions does the taxpayer needs to take before 31st March 2020 in order to prevent further problems?
Krishna (Fictional Character): Arjuna, People are taking enough preventive measures to save themselves from Corona virus. The taxpayers have to take care to follow all the Tax laws at year end and has to maintain his books of accounts. Tax planning in advance will be more beneficial; if it is delayed then taxpayer may get trapped. For a taxpayer, the March 31 deadline remains same as all tax related tasks need to be completed by then. Let’s learn about some tax-related matters to attend to now so that they can be wrapped up by March 31, 2020.
Arjuna (Fictional character): Krishna, what are points on which the taxpayers need to pay attention at the end of financial year for Income tax?
Krishna (Fictional character): Arjuna, the taxpayer should pay keen attention towards the following points in relation to Income Tax:
1) If deduction u/s 80 is to be claimed in income tax, then every taxpayer should verify the limits of income tax and their tax liability and should invest, donate, etc. before 31st March.
2) Salaried Employee should give the details of Investments and deductions to Employer so that less TDS will be deducted in March month.
3) If Taxpayers have not paid Advance Tax before 15th March then it should be paid before the 31st March so that less interest will be levied.
4) Every Taxpayer should download Form 26AS and verify TDS deducted. Similarly, taxpayer should also verify Income as mentioned in 26AS with Books of Accounts. If there are differences then they need to be rectified.
5) TDS on all expenses for the period 2019-20 should be done and paid else 30% of such expenditure will be disallowed.
6) Deadline to file the belated ITR for FY 2018-19 is 31st March, 2020. Also, late fees for Belated Return is Rs.10,000.
7) Aadhaar-PAN linking is now mandatory for the PAN holders requiring filing of Income Tax Return. The last date to link aadhaar number and PAN is 31.03.2020.
Arjuna (Fictional Character): Krishna, what are points on which the taxpayers need to pay attention at the end of financial year for GST?
Krishna (Fictional Character): Arjun, following are the things to keep in mind –
1) All the exporters who make exports without paying tax under LUT should apply for LUT for FY 20-21.
2) The taxpayer must also workout whether he wants to convert to Composition scheme (Limit is Rs. 1.5 Cr. Now) from FY 20-21.
3) The taxpayer should reconcile his books of accounts and returns, as required rectifications can be made in the return of March 2020.
4) Credit Notes/ Debit notes if any should be issued before 30th September 2020 in relation to invoices issued during the year 19-20.
5) Taxpayer should reconcile their Input tax credit as reflected in GSTR 2-A with GSTR 3B filed by them and also books of accounts, should also take supplier follow up.
6) Accept the TDS credit as reflected on GST portal on monthly basis.
7) New billing series for FY 20-21 w.e.f 1st April 2020.
8) The due dates for filing GSTR-1 is as follows:
i)Turnover more than Rs 1.5 cr -to file before 10th of the following month
ii)Turnover up to Rs 1.5 cr -to file before 13th of the following quarter
In the 39th GST council meeting held on 14th March 2020, some important decisions taken are as follows:
The taxpayers are now liberated form the headache of GST audit, new returns & E-invoicing, hence the taxpayers should now focus on the matters to be wrapped up before 31st March 2020.
Arjun (Fictional Character): Krishna, What lesson should the taxpayer take from this?
Krishna (Fictional Character): Arjuna, the taxpayers should take precautions at the right time i.e March ending so that they can save themselves from litigations under Income tax & GST. The benefit of efficient tax planning at the March end shall also help taxpayers to file their Income Tax Returns before due date. Also, Corona virus is in the air, people as well as the government are taking precautionary measures to prevent getting infected from it, so it is a request to all our readers to take preventive measures and avoid public gathering and stay safe and by taking all preventive steps, taxpayers will say “Corona se Darona”.