ITR

Financial Year Closing (FY 2025–26)

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As the financial year 2025-26 approaches its close, it is important for businesses to review their financials, tax positions, and compliance status to ensure a smooth year-end closing. This advisory note outlines the key action points to avoid disallowances, penalties, and notices under the Income-tax Act, 1961.

🧾 Income Tax – Key Year-End Actions

✔ Expense Booking
• Ensure all expenses related to FY 2025-26 are recorded before 31 March
• Accrue expenses such as:
o Rent
o Professional fees
o Interest
o Audit fees
o Electricity / internet

✔ Check Disallowances
Review critical sections to avoid tax disallowance:
• Section 40A(3): Cash payments above ₹10,000
• Section 43B: PF, ESI, GST, bonus payable
• TDS-related disallowances

✔ TDS Compliance
• Deduct TDS on all applicable payments:
o Salary (Section 192)
o Contractor (194C)
o Professional fees (194J)
o Rent (194I)
• Ensure TDS is deducted and deposited on time
• Reconcile TDS with books

✔ Advance Tax
• Pay remaining advance tax before 31 March
• Avoid interest under sections 234B & 234C

👥 Payroll & HR Compliance

✔ Salary & Bonus
• Book salary for March
• Record bonus / incentives
• Check leave encashment provision

✔ Employee Deductions
• Verify:
o PF / ESI
o TDS calculation
o Investment proofs (80C, 80D, etc.)

🧮 GST Compliance

✔ Reconciliation
• Match:
o Books vs GSTR-1
o Books vs GSTR-3B
o ITC vs GSTR-2B

✔ ITC Review
• Reverse ineligible ITC
• Ensure vendor compliance

📚 Accounting & Financial Review

✔ Books Finalisation
• Complete bank reconciliation
• Verify debtors & creditors
• Review provisions & accruals

✔ Fixed Assets
• Record additions / deletions
• Calculate depreciation

🤝 Vendor & Contract Compliance

✔ Vendor Review
• Collect pending invoices
• Verify vendor GST & PAN
• Ensure TDS compliance

✔ Agreements
• Review ongoing contracts
• Check expiry / renewal terms

💰 Cash & Banking Controls

• Avoid cash transactions beyond prescribed limits
• Ensure proper documentation of all transactions
• Review loans & advances

📂 Documentation & Audit Readiness

Prepare for audit by maintaining:
✔ Invoices & bills
✔ Agreements
✔ Bank statements
✔ TDS records
✔ GST returns
✔ Payroll records

📅 Important Due Dates (March-End Focus)

Compliance | Due Date
Advance Tax (Final Installment) | 15 March
TDS Deposit (March) | 30 April
TDS Return (Q4) | 31 May
Form 16 Issue | 15 June

⚠️ Key Risks if Not Completed

Failure to complete year-end activities may result in:
• Expense disallowances
• Interest & penalties
• Income tax notices
• GST mismatches
• Audit qualifications

🏁 Conclusion

A timely and structured financial year closing ensures compliance, reduces tax risks, and strengthens financial reporting. Businesses should proactively review all tax, accounting, payroll, and regulatory aspects before 31 March to avoid last-minute issues.

For a smooth closure, it is advisable to seek professional assistance for compliance review, tax planning, and audit preparation.

For any assistance with FY closing, compliance review, or tax planning, feel free to connect with us.

Income Tax Closing Checklist for FY 2025–26 – What Every Business Must Complete Before 31 March

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As the financial year comes to an end, businesses must ensure that all Income Tax related activities are properly completed before 31 March to avoid penalties, notices, and unnecessary tax liability. Proper year-end planning helps in tax saving, compliance, and smooth audit preparation.

At Komplytek, we help businesses complete their financial year closing with accurate accounting, tax planning, and compliance management.

Below is a complete Income Tax Closing Checklist for FY 2025–26.

📊 Review Profit & Loss Account

• Verify all income is recorded
• Check expense booking
• Identify disallowed expenses
• Check extraordinary / one-time entries

✔ Helps in correct tax calculation
✔ Avoids mismatch during audit

🧾 Verify All Expenses Are Booked Before 31 March

Ensure booking of:
• Rent
• Salary & bonus
• Professional fees
• Interest
• Electricity / internet / office expenses
• Consultancy charges

👉 Expenses not booked before year end may not be allowed for deduction.

🏦 Check TDS Deduction & Deposit

• Verify TDS deducted on all applicable payments
• Deposit TDS before due date
• Match with TRACES / Form 26Q / 24Q
• Check vendor TDS mismatch

Important for:
• Salary
• Contractor payments
• Professional fees
• Rent
• Commission

Late deduction may lead to:
• Disallowance of expense
• Interest & penalty

💰 Verify Advance Tax Payment

Check whether advance tax is properly paid:
• June installment
• September installment
• December installment
• March installment

👉 If short paid → Pay before 31 March to avoid interest u/s 234B & 234C.

🏢 Depreciation Calculation on Fixed Assets

• Update asset register
• Add new assets purchased
• Remove sold assets
• Calculate depreciation as per Income Tax Act

✔ Reducing taxable income
✔ Correct balance sheet reporting

🔗 Check Related Party Transactions

Verify transactions with:
• Directors
• Partners
• Group companies
• Relatives
• Sister concerns

Ensure:
• Proper documentation
• Reasonable pricing
• Compliance with Income Tax rules

Required for audit & transfer pricing cases.

📉 Verify Loans, Advances & Interest

Check:
• Loan balances
• Interest provision
• Interest TDS
• Confirmation from parties

Mismatch may lead to notice during assessment.

🔍 Reconcile Books with Bank & GST

• Bank reconciliation
• GST reconciliation
• TDS reconciliation
• Debtors / creditors confirmation

Important for:
• Income tax return
• Audit
• GST return
• Financial statements

⚖ Check Disallowances Under Income Tax Act

Review expenses not allowed fully, such as:
• Cash payments above limit
• Late TDS deposit
• Personal expenses
• Penalty / fines
• Unapproved provisions

Proper review helps in correct tax calculation.

📑 Prepare for Tax Audit (If Applicable)

Check applicability of audit u/s 44AB.

Keep ready:
• Books of accounts
• Invoices
• Bank statements
• TDS details
• GST returns
• Agreements / contracts

Proper preparation avoids last-minute issues.

💡 Plan Tax Saving Before 31 March

Possible planning:
• Bonus / incentive booking
• Asset purchase
• Expense provisioning
• Investment planning
• Salary restructuring

Tax planning must be done before year end.

✅ Final Review Before Closing Books

Before closing accounts ensure:
✔ All entries passed
✔ All taxes calculated
✔ All reconciliations done
✔ All compliances checked

This ensures smooth filing of:
• Income Tax Return
• Tax Audit Report
• GST Return
• Financial Statements

🏁 Conclusion

Financial year closing is not just accounting work — it is the most important time for tax planning, compliance, and financial control.

With proper guidance from Komplytek businesses can complete Income Tax closing smoothly and avoid penalties, notices, and extra tax burden.

If your business needs support in:
✔ Income Tax Closing
✔ Tax Planning
✔ Audit Preparation
✔ Accounting Finalisation
✔ Virtual CFO Services

Komplytek team is ready to help.

Key Changes in Income Tax Rules for FY 2024–25 (Assessment Year 2025–26)

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Key Changes in Income Tax Rules for FY 2024–25 (Assessment Year 2025-26)

The financial year 2024–25 brings several crucial changes to India’s income tax landscape that every taxpayer, whether salaried, self-employed, or a senior citizen, should be aware of. From revised tax slabs and enhanced standard deductions to updated ITR forms and extended filing deadlines, the government has aimed to simplify compliance while offering moderate relief to individuals. This blog summarizes the key updates and what they mean for your tax planning in the year ahead.

📊 Tax Slab Revisions (New Tax Regime)

Annual Income Range Tax Rate
Up to ₹3,00,000 Nil
₹3,00,001 – ₹7,00,000 5%
₹7,00,001 – ₹10,00,000 10%
₹10,00,001 – ₹12,00,000 15%
₹12,00,001 – ₹15,00,000 20%
Above ₹15,00,000 30%

💰 Standard Deduction Hike

  • Increased from ₹50,000 to ₹75,000 for salaried individuals under both regimes.

  • Family pension deduction also rose to ₹25,000.

🧾 Rebate Uplift Under the New Regime

With the enhanced ₹75,000 standard deduction and rebates, individuals earning up to around ₹7.75 lakh pay no tax.

📑 Revised ITR Forms & Utilities

  • Changes in ITR 1/ITR 4 Excel utilities require more detailed disclosures.

  • ITR 1 to ITR 4 forms have nine updates, expanding eligibility and adding new validations.

🗓️ Extended ITR Filing Date

Deadline extended from 31 July to 15 September 2025 for FY 2024–25 returns due to ITR restructuring.

🏠 HRA & Capital Gains Reporting

HRA claims and capital gains calculations face stricter scrutiny—complete documentation is essential to avoid notices.

💼 TDS/TCS and Procedural Relief (Budget 2025 Updates)

  • TDS on senior citizens’ interest doubled from ₹50,000 to ₹1 lakh.

  • TDS on rent increased from ₹2.4 lakh to ₹6 lakh.

  • NSC withdrawals (post-Aug 29, 2024) are now tax-exempt.

  • ITR correction window extended from 2 to 4 years.

❓ Frequently Asked Questions (FAQs)

✅ Do I still need to fill in salary details if it’s pre-filled?
Yes. While salary components may be pre-filled from Form 16, taxpayers must verify and edit details like Basic, HRA, Perquisites, and Bonus as per actuals.

✅ Is there any change in deduction claims under Sections 80C to 80U?
Yes. You now have to enter each deduction separately, such as LIC, PPF, ELSS, health insurance, education loan, etc., making it more structured and transparent.

✅ Can I still revise my return if I find a mistake later?
Yes. As per the latest rule, the ITR correction window is now extended to 4 years (under specified conditions), giving more time to rectify errors post-filing.

9 Key Updates in ITR-1 to ITR-4 for FY 2024–25

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9 Key Updates in ITR-1 to ITR-4 for FY 2024–25

1. Expanded Eligibility for ITR-1

Now allowed for individuals with:

  • Family pension (not just salary/pension income)

  • Income from other sources like interest/dividends (if not exceeding ₹50 lakh)

Still not permitted for:

  • Capital gains

  • Foreign income/assets

  • Agricultural income > ₹5,000

2. Residential Status Auto-Validation

Auto-calculated based on:

  • Number of days stayed in India

  • Date of arrival/departure (linked with AIS/TIS)

✔️ Ensures NRI/resident status is correctly determined and reported.

3. Enhanced Pre-filled Data

More fields pre-filled using PAN & AIS:

  • Salary, interest, and dividend income

  • TDS, advance tax

  • Capital gains (if any from broker uploads)

✔️ Reduces manual errors and mismatches.

4. More Detailed Salary Breakup (ITR-1)

Now mandatory to show:

  • Basic pay

  • HRA

  • Perquisites

  • Bonus/incentives

📝 Matches Form 16 format for increased accuracy.

5. Cash vs Digital Receipts Declaration (ITR-4)

For businesses under presumptive income scheme (44ADA/44AE), must declare:

  • Total receipts

  • Breakup: Cash vs. Digital/Online

🔍 Promotes transparency in business income reporting.

6. Bank Account Disclosures Expanded

Now mandatory to disclose:

  • All active and dormant accounts

  • Bank names, IFSC codes

🏦 Aids refund reconciliation and interest/cash reporting.

7. Section-wise Deductions Required (80C to 80U)

Must mention each deduction clearly:

  • 80C: LIC, PPF, ELSS, etc.

  • 80D: Health insurance

  • 80E: Education loan interest

  • 80G: Donations

📌 Ensures accurate capping (e.g., ₹1.5 lakh under 80C).

8. New Validations for Capital Gains Reporting (ITR-2 & 3)

Structured disclosures needed:

  • Date of acquisition & sale

  • Type of asset (shares, property, etc.)

  • Indexed cost & LTCG exemption (if any)

📊 System matches broker data from AIS for accuracy.

9. Foreign Income & Asset Reporting (ITR-2 & ITR-3)

Revised Schedule FA includes:

  • Foreign bank accounts

  • Shares/stocks

  • Properties abroad

🌍 Must report even if there’s no income.
⚠️ Non-disclosure can attract penalties under the Black Money Act.

TDS In case of Non-Resident – Section 195

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tds

An assesses total income earned during the previous year is taxable in the assessment year, i.e., the year following the financial year. However, tax has to be paid in the previous year itself in the form of TDS, TCS, and advance tax.

TDS refers to tax deduction at source, which is required to be deducted by the person at the time of making payments like salary, rent, commission, professional fees, interest etc. and deposit the same with the government on or before the due date. A fixed percentage is defined in the Income Tax Act 1961 for the purpose of TDS.

Here we are looking at the TDS in the case of payment to a non-resident.

Section 195

Section 195 is applicable to any individual (resident or non-resident) who is making payment of interest or any other amount chargeable to tax (except payments under section 194 LB, section 194 LC, and salary payments outside India) to an individual non-resident or foreign company. Such a person is liable to deduct tax at the rate specified by the Income Tax Act 1961. This helps to reduce the revenue loss by deducting the tax while making the payment to a non-resident. Furthermore, the payer is required to furnish the details of payment in the form as prescribed by the Central Board of Direct Taxes.

For the purpose of this section, “payer” can be any person. Here, “any person” includes both residents and non-residents. The residential status of a payee can be determined as per section 6 of the Income Tax Act 1961.

Section 194 LB of the Income Tax Act 1961 deals with the provisions relating to income by way of interest from the Infrastructure Debt Fund.

Section 194LC of the Income Tax Act 1961 deals with the provisions relating to income by way of interest from an Indian company or business trust.

Time of Deduction

Any person who is making payment to a non-resident individual or foreign company is required to deduct TDS at the time of credit of such income to the payee’s account or whichever comes first, at the time of payment.

Rates for the Deduction of TDS

The following are the TDS rates given under section 195:

 

Particulars Rate of TDS
Income from investments made by NRI 20%
Long-term capital gain income for NRIs as defined by section 115E 10%
Income from long-term capital gain (Listed shares and Securities as per section 112A) 10%
Additional long-term capital gain    20%
Short-term capital gain as per section 111A           15%
Interest imposed on foreign currency loans       20%
Royalty or fees for technical services payable by the Government or an Indian Concern          10%
Winning from lotteries, crossword puzzles, horse races, card games, and any other such Games            30%
Any other income source                30%

 

The above rates are given as per Finance Act 2022 and a cess of 4% & surcharge is added as applicable.

The payee can choose between the rates specified in the Finance Act 2022 and the rates specified in the Double Taxation Avoidance Agreement (DTAA), whichever is more advantageous to the payee. Furthermore, no surcharges or less are required to be added to the DTAA rates.

However, if the payee fails to furnish the PAN to the payer, then the payer will be required to deduct TDS at higher rates as per section 206AA.

Threshold limit to deduct TDS

There is no threshold limit for deducting TDS. TDS shall be deducted on all types of payments as prescribed under section 195.

Why should you choose Komplytek?

The auditing service provided by Komplytek entails reviewing all of the client’s financial information and ascertaining its accuracy. We provide unparalleled audit services, including assessing internal controls, testing financial data, and gauging fraud dangers. We also seek to deliver accurate financial accounts and manage the company’s financial assets. In order to enhance your company operations, we give factual observations with the highest honesty.

Komplytek is at your service if you are seeking high-caliber feedback on your company procedures. In addition to trustworthy, high-quality evaluation services, we provide our clients with high-quality audit methods. Our experts are up-to-date with the latest technologies in the audit practice. Our tax and audit assurance services include:

  1. Internal Audit before finalization of books
  2. Statutory Audit
  3. Stock Audit
  4. Assets Audit
  5. Any client-specific financial audits or compliance audits.

 

Document Identification Number (DIN) under GST benefits & structure.

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Document Identification Number

 

A new system for the electronic development of a Document Identification Number (DIN) for all GST-related communications (including emails) to be delivered by the government offices to taxpayers and other interested parties has been implemented by the Central Board of Indirect Taxes and Customs (CBIC). Any document made without a valid GST DIN will be regarded as invalid. On the CBIC portal, taxpayers can confirm the validity of the Document Identification Number (DIN). in GST.

What does a DIN in GST mean?

A 20-digit document identification number serves as the unique identifier for each communication that government entities deliver to taxpayers. The taxpayer can verify the legitimacy of digital communications they receive from the government using this number.

DIN Structure with an example

The DIN’s structure is “CBIC-YYYY MM ZCDR NNNN,” and it includes:

  • YYYY represents the year that the DIN was created.
  • MM stands for the month in which the DIN was generated.
  • Zone Commissionerate Division Range Code, also referred to as ZCDR.
  • NNNN stands for “randomly generated alphanumeric code.”

The Document Identification Number-DIN

The process of levies and collections involves a lot of communication. A business requests a refund when it pays more tax than it needs. If the corporation pays less than the fair value, the government (tax officials) may order the company to pay more. The tax authorities may occasionally find it suspicious when a firm declares its taxable income to be so low. The firm can receive a notice from the tax authorities.

As a result, it is clear that this communication would require a substantial number of papers, including returns, appeals, letters, notifications, orders, and much more. In order to keep track of all documents, DIN requires government tax officers to attach a distinct DIN to each one.

The CBDT debuted its 10-digit DIN on October 1st, 2019. On November 8, 2019, CBIC papers received an extension, and CBIC also introduced its own 20-digit DIN.

The use and advantages of the GST document identification number

 

The taxpayer would profit from the following benefits of a document identification number on any correspondence from the GST department:

  • Transparency in all dealings with the department to prevent receiving fraudulent notices and make it simple to spot them.
  • Establishing an accurate audit trail for each message the department sends. Uphold the taxpayers’ rights.

 

DIN use/application

 

In GST matters where probes are ongoing and arrest warrants or search warrants have been obtained, the document identification number will now be used. This communication’s legitimacy will be verified by the use of a document identification number. By entering this DIN in the “VERIFY CBIC-DIN” box on www.cbic.gov.in, a taxpayer can authenticate the communication’s authenticity. Only if the communication is legitimate will the window report the information.

 

Why is the DI number crucial for taxpayers and businesses to know?

 

It is common practice to send summons and notices to unofficial email accounts. Implementing a document identifying numbers assures the validity of such notices and shields a taxpayer from pointless annoyance. So, before replying to any notification, it is crucial for a taxpayer to double-check the document identifying number.

 

Taking appropriate action as a result of a notice’s inadequacy, consequences, and lack of a DIN in certain circumstances

 

All correspondence with the taxpayer must have a DIN. Without a document identification number, every communication of this kind is void. To the extent that they were never issued, they are regarded as invalid. A communication could, however, be sent out in certain cases without a document identifying the number. In this case, the taxing authorities are required to provide justification for why the document was issued without a document identification number. On rare occasions, a communication might not contain a document identification number. For example,

  • If a technical fault or other flaw exists in the production of the electronic DIN
  • When an investigation, inquiry, GST DIN Verification, etc. needs to be conducted quickly or urgently, and the authorized official is not present at his normal place of duty (office).

However, any message sent under the aforementioned conditions must be regularized within 15 working days. Taxpayers are urged to be aware that any papers issued by government agencies without a DIN (apart from those issued under the exclusions listed below) would be deemed invalid.

 

The Outcome

 

The aim of the government is to make conducting business easier. It is clear from its assertion that a system without a face would be set up between the assessor and the assessee. The initial step in this approach is DIN.

 

Why should you choose us?

 

The best business management consultant can help clients with matters like finances, GST, human resources, compliance procedures, and strategy formulation. To enhance their operations and performance, a variety of public and private businesses use business management consultants.

Leading business management consulting company Komplytek provides practical solutions to companies in many markets and sectors. We help companies perform better by giving them expert guidance on how to expand and get around challenges. Furthermore, we provide integrated services and solutions that support finance, accounting, and compliance operations by enhancing control efficacy visibility and ensuring prompt corrective actions. For our clients, we put a lot of emphasis on developing secure, user-friendly accounting and also compliance management solutions.

 

 

 

Form 26AS – Definition and Purpose

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Form 26AS

An essential tax document is Form 26AS. It is an annual statement that is sent to individual taxpayers and linked to their Permanent Account Number (PAN). Below you will find information on this form’s applicability as well as instructions on how to see or download it online.

 

What is Form 26AS?

An annual statement called Form 26AS contains information on the tax credits applied to a taxpayer’s PAN. A taxpayer can obtain this form using their login credentials from the Income Tax Department’s online filing site.

You can refer to it for information on your income (from which taxes have been deducted) and the taxes that have been paid to the government treasury by or on your behalf by the deductor (which could be your company, bank, etc.).

What purpose does it serve?

 

Before submitting their income tax return, taxpayers should compare their actual transactions to the ones listed on their Form 26AS (ITR). Omissions and other filing errors will be much reduced as a result of doing this. An investigation may be conducted if there is a discrepancy between the Form and your submitted income tax returns.

This form also attests to the fact that several organizations have paid taxes on your behalf and placed the funds in the government account.

 

How can it be downloaded?

 

You may get your Form 26AS from the website of the Income Tax Department. You need to already have a user account in order to register on the website.

 

If you do not log in, how can you access the form?

 

Additionally, you may access your Form using your bank account’s internet banking service. Only if your PAN is connected to your bank account then this function is accessible. Axis Bank, Bank of India, ICICI Bank, IDBI Bank, Indian Overseas Bank, Kotak Mahindra Bank, State Bank of India, and Union Bank are a few of the banks that provide this service.

 

What has changed in Form 26AS?

 

The new form is now an Annual Information Statement (AIS) instead of an Annual Tax Statement. While the Form 26AS and the AIS are both now accessible through the portal, the old Form will be phased out and replaced by the AIS until the new AIS has been verified and is fully functioning. Only tax deducted at source (TDS) against your PAN, tax collected at source (TCS) against your PAN, details of other taxes paid, and information on income tax refunds were included in the previous form. Part A and Part B make up the new AIS.

Part A of the form contains general information about the taxpayer and the following fields:

  1. Permanent Account Number
  2. Aadhaar ID
  3. Name
  4. Date of Birth/Incorporation
  5. Mobile number
  6. Email ID
  7. Address

It is significant to notice that the new Form includes a space for the taxpayer’s cell phone number and email address, which were not previously recorded. This demonstrates the value of the mobile number and email address in the overall scheme of things, as there will only be one faceless method used for all interactions with the tax authorities.

The following details are in Part B of the form:

  1. Details on tax deductions or source-based collections
  2. Details on certain financial transactions.
  3. Information on tax-related payments

What makes Form 26AS and Form 16 different from one another?

 

While the contains all of a taxpayer’s tax-related actions, Form 16 is a declaration that details the total amount paid to an employee and the tax withheld during the course of a fiscal year.

 

For more details, Get in touch with the experts. 

 

6 Reasons to File Income Tax Return

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Income tax return

The objective of completing your income tax return is not just to disclose your earnings to the Income Tax Department and pay any taxes that are due; it also enables you to take advantage of various benefits that may be useful to you in the near and long term.

Let us examine the advantages of submitting your income tax return as a professional or business owner.

1.Loss carries forward

Business losses are unavoidable. When calculating your income under the “Profit and Gains of Business and Profession” category, you can deduct the losses you have suffered. You can file an income tax return to carry forward such losses for up to eight consecutive years. You will not be able to utilize this option if your Income Tax Return is not filed. As a result, you can carry forward previous losses to offset future gains in order to lower the amount of taxes due in the following years.

2. Request a loan

Just as people require loans at certain times in their lives, so do businesses. Businesses use loans to expand and improve their operations. As a result, when you apply for a loan at a critical stage in the development of your company, your Income Tax Return is a crucial document that banks will require, among other documents, before determining whether your company is a wise investment for them to grant a sizable sum of money, which you should be able to repay. Therefore, there are several benefits to filing your income tax return on time each year that will help your business.

3. Avoids Penalty and Punishment

In India as well as other countries, there are harsh consequences for tax evasion. Thus, filing your income tax returns on time will spare you from having to deal with the Income Tax Department in uncomfortable ways that will obstruct your capacity to conduct business quietly.

4. Claim Depreciation

Assets that are registered in the business’s or owner’s name may be written off under income tax law. However, the claimed item must be used solely for commercial or professional purposes. If you have not chosen the Presumptive Taxation Scheme, you can determine your total taxable earnings by subtracting all permitted costs and depreciation under Section 32 of the Income Tax Act. By taking full advantage of all deductions, including depreciation, enables you to minimize your taxes.

5. Seeking government tenders

Your income tax returns reflect the financial health and degree of success of your firm. Your ability to obtain government bids is typically associated with the accuracy of the financial records verification. This is done by looking at your annual tax returns for the last several years. The most qualified applicant will have his or her qualifications for project management carefully examined. The same as with firms, professionals seeking contracts should make sure that their company tax returns are submitted on time and accurately.

6. Take advantage of the assuming taxation scheme

Businesses and professionals can use the Presumptive Taxation Scheme under Section 44AD/44ADA of the Income Tax Act to pay tax on only a percentage of their profits, which reduces the financial burden of paying taxes for these taxpayers. This programme is open to professionals making less than Rs 50 lakh and small businesses making Rs. 2 crore or less annually. The businesses only have to pay taxes on 6% or 8% of their revenue. Whereas the professionals only have to pay taxes on 50% of their revenue. Taxpayers can use ITR 4 to file their tax returns and be eligible for this program’s advantages.

 

File your Income Tax before the deadline. Contact the expert https://komplytek.com/

 

 

ITR Filing Deadline for FY 2021–2022 (AY 2022-23)

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Income tax return

 

The income tax return i.e., ITR filing deadline for the fiscal years 2021–2022 and assessment years 2022–2023 is July 31 if you are an earning individual. It is best to file your paperwork as soon as possible to avoid last-minute complications.

For tax return filers’ convenience, the Income-Tax (I-T) Department offers pre-filled forms. However, taxpayers should double-check each field on the pre-filled form and keep any supporting documentation close at hand when submitting the return.

ITR filing deadline 2022: Last day to submit an income tax return for individuals, HUFs, and businesses, including details on late fees.

The 2022 ITR filing deadline is approaching. It is crucial that every taxpayer submits their ITR before the deadline. A fine in the form of a late filing charge is assessed for failure to do so. For the majority of taxpayers, the deadline to submit an ITR for the fiscal year 2021–2022 is July 31. It is important to be aware that various taxpayer classes have varied ITR deadlines or due dates. Continue reading to learn when and where to file income tax returns for various taxpayer categories, as well as what will happen if someone misses the deadline.

For salaried people, the ITR filing deadline 2022

For salaried employees and individuals whose accounts do not need to be audited, the deadline for ITR filing is July 31.

ITR filing last date 2022 for HUF

According to the Income Tax Rules, the last date to file an ITR for Hindu Undivided Families (HUF) whose accounts don’t need to be audited is also July 31.

The due date for ITR filing for taxpayers whose accounts must be audited

Some taxpayers’ accounts require an audit. These taxpayers are given more time to submit their ITRs. Such taxpayers must file their ITRs by October 31, 2022. (Unless extended by the government).

A corporation, a working partner of a firm, an individual, and other entities like a proprietorship, firm, etc. that must have their accounts audited are included among these taxpayers.

The due date for ITRs for taxpayers required to file under Section 92E

When taxpayers engage in overseas transactions within the applicable financial year, Section 92E requires them to file a report. Such taxpayers have until November 30, 2022, to file their ITRs.

What if you failed to submit the return by the deadline?

A delayed return can be filed after the initial return of income filing deadline if the original deadline is missed. The income tax division also stipulates the deadline for submitting the late return. This deadline has been pushed back three months until the conclusion of the assessment year (unless extended by the government).

However, there would be a Rs. 5,000 fine assessed for filing returns late. However, the cost is only up to Rs 1,000 if the person’s total income is less than Rs 5 lakh.

What benefits does filing ITR before the deadline offered?

When you submit ITRs on time, you gain a lot of benefits as well as the reputation of being a responsible member of the nation. These advantages include some of the following:

  1. Your chances of obtaining a car loan, a home loan, and other loans increase if you file your income tax returns on time.
  2. You will get your returns as soon as possible if you file your ITR on time.

3.ITRs can be used to prove a person’s address and income, which are both necessary when requesting a loan or visa.

  1. When applying for a visa, the majority of consulates and embassies need you to provide copies of your income tax records for the past two years.
  2. Taxpayers must pay their taxes before they may submit an ITR. In accordance with Section 234A, interest must be paid at a rate of 1% per month starting on the tax payment due date and extending until the payment date. If you submit your tax return on time, you might avoid having to pay extra interest. As a result, your tax burden will increase the longer you put off paying taxes and filing returns.

 

 

8 Essential Benefits of GST

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GST-Tax

Following the introduction of the Goods and Services Tax (GST), the government was flooded with input on the tax’s benefits and drawbacks. The GST is a national value-added tax (VAT) that is imposed on the production, purchase, and delivery of goods and services.

It removes major indirect taxes imposed on products and services by state and federal governments. The Goods & Service Tax is substantial tax reform in India and in this post, we’ll look at the positives of GST taxation.

Benefits of GST

1. Business Ease

The Goods & Service Tax introduces the notion of a single national market. It deters states from engaging in harmful rivalry. It has now become beneficial to run a business across state lines.

2. Tax Documentation and Filing Made Easy

Entrepreneurs have benefited from the GST. Because there are no various taxes to deal with, compliance and documentation have become much easier. Filing a return, paying taxes, and obtaining a refund have all become much simpler.

3. Reduces Tax evasion and corruption

The GST Act improves tax administration by making it more transparent and free of corruption. The government lost money as a result of tax evasion before implementation of Goods & Service Tax. There are no hidden taxes, and this reduces the cost of doing business.

4. GST Removes Tax Cascading Effects

Goods & Service Tax combines the majority of indirect taxes levied across the country, removing the “tax on tax” impact that has plagued the supply chain and driven up end-user costs.

5. Powered by Technology

Because it is technology-driven, the entire registration and filing of returns procedure is speed up. It also guarantees that the process is transparent and that tax collection is in accordance with the law. Filling out the registration form, submitting a refund request, dealing with notifications, and dealing with consumer complaints are all facilitated through the GST Portal.

6. Product That Is More Competitive

The Goods & Service Tax has made manufacturing more competitive by addressing the cascading effect of taxes, interstate taxes, and excessive logistics costs. It has benefitted both entrepreneurs and customers.

7. Regulates poorly organized industries

In the country, the textile and construction industries, for example, are highly unstructured and unregulated. GST has made it easier to manage payments, compliance, and input credit online.

8. GST Scheme of Composition

The composition system provides relief from tax responsibilities for small enterprises. Any taxpayer with a turnover of less than Rs. 1.5 crore is eligible for this plan.

Goods & Service Tax and the “Make in India” initiative

GST is the backbone of this strategy, as it applies to imports and gives a boost to manufacturing by reducing superfluous costs. Another benefit is the removal of commercial roadblocks, which make transactions and the free movement of goods across state lines much easier. By removing the arbitrary taxing system, the GST model has united the Indian market. Manufacturing has benefited greatly from reduced logistical costs, and relief from export taxes and refunds.

Komplytek is a renowned GST consultant in Delhi and the NCR. We offer our customers complete Goods & Service Tax solutions, which comprise all services such as:

  • Acquiring Goods & Service Tax Registration
  • GST returns are generated and filed on a monthly/quarterly basis.
  • Consultancy on a variety of issues
  • Goods & Service Tax refund application preparation and filing, as well as follow-up
  • Annual return preparation and filing
  • Auditing and evaluation of the Goods & Service Tax
  • GST Number Cancellation