As the new financial year 2024-25 begins, taxpayers seek guidance on navigating its complexities without stumbling into financial pitfalls. Arjuna queries Krishna on crucial aspects to consider at the outset, ensuring a prudent start to the fiscal year.
Arjuna (Fictional Character): Krishna, It is the beginning of the new Financial Year 2024-25. Most of taxpayers are curious to know about the things they should keep in mind from the start of new financial year, so that they will not commit the mistakes done by them in previous years.
Krishna (Fictional Character): Arjuna, As new financial year comes with various changes and compliances the taxpayers must know about such changes and compliances which need to be done by them at the beginning of Financial year.
Arjuna (Fictional Character): Krishna, What are the changes and points that the taxpayer should know at the beginning of new Financial Year relating to Income Tax?
Krishna (Fictional Character): Arjuna, Following are the things to be keep in mind at the start of FY 2024-25:
1. Assess the previous year turnover and accordingly if they fall within the threshold limit of MSME then they should obtain the Udyam registration and should provide the details regarding it to their buyers.
2. Obtain the details of the suppliers who had taken the Udyam registration and shall make the payment to all those suppliers within 45 days (i.e payment for all purchase made between 15/02/2024 to 31/03/2024 shall be done before 14/05/2024) considering 45 days period to avoid disallowance of expense in the Financial Year 2023-24.
3. If turnover in the previous year exceeds 10 crore then the taxpayer shall deduct TDS u/s 194Q or collect TCS u/s 206C(1H) @0.1% if total purchase exceeds 50 lakhs in FY 2024-25.
4. Check the Inoperative PAN Status of all deductees and if the PAN found inoperative then deduct TDS @20%.
5. Redownload and check the 26AS and AIS of AY 22-23 and AY 23-24 and if any income is not reported in the Income Tax return then they should file the updated return.
6. Evaluate the turnover of FY 23-24 and check the applicability of Tax audit (Rs. 1 crore or 10 crore) and eligibility for presumptive taxation (Rs. 3 crore).
7. If the Businesses wishes to continue in the old scheme then the they shall file form 10 IEA before filing the income tax return of FY 23-24.
Arjuna (Fictional Character): Krishna, What are the changes and points that the taxpayer should know at the beginning of new Financial Year relating to GST?
Krishna (Fictional Character): Arjuna, Following are the things to be keep in mind at the start of FY 2024-25:
1. If the turnover in the previous FY exceeds 5 crore, then it is mandatory to do E-invoicing from 1st April 2024.
2. A taxpayer whose turnover in the previous year does not exceeds Rs. 1.5 crore then they had the option to opt for Composition scheme in the FY 24-25.
3. A Taxpayer whose turnover in the previous year is less than 5 crore then they had option to opt for QRMP scheme in FY 2024-25.
4. New Billing series may be started for FY 2024-25.
5. All exporters or who supplies goods to SEZ units must mention the LUT number (of new LUT filed for FY 24-25) on the invoices issued w.e.f 01/04/2024.
Arjuna (Fictional Character): Krishna, what should one learn from this?
Krishna (Fictional Character): Arjuna, As we start the journey of the new financial year, let us not be April fools when it comes to our finances. Just as 1st April brings with it tricks and pranks, the field of finance too can bring unexpected surprises if we are not careful. In this vast comedy of finance, let’s embody the role of experienced players, turning April fools into April sages with each wise decision we make along the way.
Conclusion: The discourse between Arjuna and Krishna enlightens taxpayers on crucial aspects for commencing the new financial year. By understanding and implementing these recommendations, individuals and businesses can navigate the intricacies of Income Tax and GST compliance, ensuring a prudent and foolproof start to the fiscal year 2024-25.
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