{"id":836,"date":"2026-04-06T07:26:39","date_gmt":"2026-04-06T07:26:39","guid":{"rendered":"https:\/\/komplytek.com\/blogs\/?p=836"},"modified":"2026-04-07T14:55:03","modified_gmt":"2026-04-07T14:55:03","slug":"financial-year-closing-fy-2025-26","status":"publish","type":"post","link":"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/","title":{"rendered":"Financial Year Closing (FY 2025\u201326)"},"content":{"rendered":"<body><h2 data-section-id=\"1h9hxjf\" data-start=\"132\" data-end=\"173\" id=\"mcetoc_1jlgqn03v0\"><\/h2>\n<p data-start=\"175\" data-end=\"488\">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.<\/p>\n<hr data-start=\"490\" data-end=\"493\">\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/#%F0%9F%A7%BE_Income_Tax_%E2%80%93_Key_Year-End_Actions\" >\ud83e\uddfe Income Tax \u2013 Key Year-End Actions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/#%F0%9F%91%A5_Payroll_HR_Compliance\" >\ud83d\udc65 Payroll &amp; HR Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/#%F0%9F%A7%AE_GST_Compliance\" >\ud83e\uddee GST Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/#%F0%9F%93%9A_Accounting_Financial_Review\" >\ud83d\udcda Accounting &amp; Financial Review<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/#%F0%9F%A4%9D_Vendor_Contract_Compliance\" >\ud83e\udd1d Vendor &amp; Contract Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/#%F0%9F%92%B0_Cash_Banking_Controls\" >\ud83d\udcb0 Cash &amp; Banking Controls<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/#%F0%9F%93%82_Documentation_Audit_Readiness\" >\ud83d\udcc2 Documentation &amp; Audit Readiness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/#%F0%9F%93%85_Important_Due_Dates_March-End_Focus\" >\ud83d\udcc5 Important Due Dates (March-End Focus)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/#%E2%9A%A0%EF%B8%8F_Key_Risks_if_Not_Completed\" >\u26a0\ufe0f Key Risks if Not Completed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/#%F0%9F%8F%81_Conclusion\" >\ud83c\udfc1 Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-section-id=\"uoxgy7\" data-start=\"495\" data-end=\"534\" id=\"mcetoc_1jlgqn03v1\"><span class=\"ez-toc-section\" id=\"%F0%9F%A7%BE_Income_Tax_%E2%80%93_Key_Year-End_Actions\"><\/span>\ud83e\uddfe <span style=\"color: #3366ff;\">Income Tax \u2013 Key Year-End Actions<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"536\" data-end=\"745\">\u2714 Expense Booking<br data-start=\"553\" data-end=\"556\">\u2022 Ensure all expenses related to FY 2025-26 are recorded before 31 March<br data-start=\"628\" data-end=\"631\">\u2022 Accrue expenses such as:<br data-start=\"657\" data-end=\"660\">o Rent<br data-start=\"666\" data-end=\"669\">o Professional fees<br data-start=\"688\" data-end=\"691\">o Interest<br data-start=\"701\" data-end=\"704\">o Audit fees<br data-start=\"716\" data-end=\"719\">o Electricity \/ internet<\/p>\n<p data-start=\"747\" data-end=\"947\">\u2714 Check Disallowances<br data-start=\"768\" data-end=\"771\">Review critical sections to avoid tax disallowance:<br data-start=\"822\" data-end=\"825\">\u2022 Section 40A(3): Cash payments above \u20b910,000<br data-start=\"870\" data-end=\"873\">\u2022 Section 43B: PF, ESI, GST, bonus payable<br data-start=\"915\" data-end=\"918\">\u2022 TDS-related disallowances<\/p>\n<p data-start=\"949\" data-end=\"1180\">\u2714 TDS Compliance<br data-start=\"965\" data-end=\"968\">\u2022 Deduct TDS on all applicable payments:<br data-start=\"1008\" data-end=\"1011\">o Salary (Section 192)<br data-start=\"1033\" data-end=\"1036\">o Contractor (194C)<br data-start=\"1055\" data-end=\"1058\">o Professional fees (194J)<br data-start=\"1084\" data-end=\"1087\">o Rent (194I)<br data-start=\"1100\" data-end=\"1103\">\u2022 Ensure TDS is deducted and deposited on time<br data-start=\"1149\" data-end=\"1152\">\u2022 Reconcile TDS with books<\/p>\n<p data-start=\"1182\" data-end=\"1289\">\u2714 Advance Tax<br data-start=\"1195\" data-end=\"1198\">\u2022 Pay remaining advance tax before 31 March<br data-start=\"1241\" data-end=\"1244\">\u2022 Avoid interest under sections 234B &amp; 234C<\/p>\n<hr data-start=\"1291\" data-end=\"1294\">\n<h2 data-section-id=\"1dgajqh\" data-start=\"1296\" data-end=\"1325\" id=\"mcetoc_1jlgqn03v2\"><span class=\"ez-toc-section\" id=\"%F0%9F%91%A5_Payroll_HR_Compliance\"><\/span><span style=\"color: #3366ff;\">\ud83d\udc65 Payroll &amp; HR Compliance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"1327\" data-end=\"1438\">\u2714 Salary &amp; Bonus<br data-start=\"1343\" data-end=\"1346\">\u2022 Book salary for March<br data-start=\"1369\" data-end=\"1372\">\u2022 Record bonus \/ incentives<br data-start=\"1399\" data-end=\"1402\">\u2022 Check leave encashment provision<\/p>\n<p data-start=\"1440\" data-end=\"1547\">\u2714 Employee Deductions<br data-start=\"1461\" data-end=\"1464\">\u2022 Verify:<br data-start=\"1473\" data-end=\"1476\">o PF \/ ESI<br data-start=\"1486\" data-end=\"1489\">o TDS calculation<br data-start=\"1506\" data-end=\"1509\">o Investment proofs (80C, 80D, etc.)<\/p>\n<hr data-start=\"1549\" data-end=\"1552\">\n<h2 data-section-id=\"17z2big\" data-start=\"1554\" data-end=\"1574\" id=\"mcetoc_1jlgqn03v3\"><span class=\"ez-toc-section\" id=\"%F0%9F%A7%AE_GST_Compliance\"><\/span><span style=\"color: #3366ff;\">\ud83e\uddee GST Compliance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"1576\" data-end=\"1665\">\u2714 Reconciliation<br data-start=\"1592\" data-end=\"1595\">\u2022 Match:<br data-start=\"1603\" data-end=\"1606\">o Books vs GSTR-1<br data-start=\"1623\" data-end=\"1626\">o Books vs GSTR-3B<br data-start=\"1644\" data-end=\"1647\">o ITC vs GSTR-2B<\/p>\n<p data-start=\"1667\" data-end=\"1737\">\u2714 ITC Review<br data-start=\"1679\" data-end=\"1682\">\u2022 Reverse ineligible ITC<br data-start=\"1706\" data-end=\"1709\">\u2022 Ensure vendor compliance<\/p>\n<hr data-start=\"1739\" data-end=\"1742\">\n<h2 data-section-id=\"1bssaqe\" data-start=\"1744\" data-end=\"1779\" id=\"mcetoc_1jlgqn03v4\"><span class=\"ez-toc-section\" id=\"%F0%9F%93%9A_Accounting_Financial_Review\"><\/span><span style=\"color: #3366ff;\">\ud83d\udcda Accounting &amp; Financial Review<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"1781\" data-end=\"1900\">\u2714 Books Finalisation<br data-start=\"1801\" data-end=\"1804\">\u2022 Complete bank reconciliation<br data-start=\"1834\" data-end=\"1837\">\u2022 Verify debtors &amp; creditors<br data-start=\"1865\" data-end=\"1868\">\u2022 Review provisions &amp; accruals<\/p>\n<p data-start=\"1902\" data-end=\"1978\">\u2714 Fixed Assets<br data-start=\"1916\" data-end=\"1919\">\u2022 Record additions \/ deletions<br data-start=\"1949\" data-end=\"1952\">\u2022 Calculate depreciation<\/p>\n<hr data-start=\"1980\" data-end=\"1983\">\n<h2 data-section-id=\"j8vmnf\" data-start=\"1985\" data-end=\"2019\" id=\"mcetoc_1jlgqn03v5\"><span class=\"ez-toc-section\" id=\"%F0%9F%A4%9D_Vendor_Contract_Compliance\"><\/span><span style=\"color: #3366ff;\">\ud83e\udd1d Vendor &amp; Contract Compliance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2021\" data-end=\"2121\">\u2714 Vendor Review<br data-start=\"2036\" data-end=\"2039\">\u2022 Collect pending invoices<br data-start=\"2065\" data-end=\"2068\">\u2022 Verify vendor GST &amp; PAN<br data-start=\"2093\" data-end=\"2096\">\u2022 Ensure TDS compliance<\/p>\n<p data-start=\"2123\" data-end=\"2199\">\u2714 Agreements<br data-start=\"2135\" data-end=\"2138\">\u2022 Review ongoing contracts<br data-start=\"2164\" data-end=\"2167\">\u2022 Check expiry \/ renewal terms<\/p>\n<hr data-start=\"2201\" data-end=\"2204\">\n<h2 data-section-id=\"1fo5s4l\" data-start=\"2206\" data-end=\"2235\" id=\"mcetoc_1jlgqn03v6\"><span class=\"ez-toc-section\" id=\"%F0%9F%92%B0_Cash_Banking_Controls\"><\/span><span style=\"color: #3366ff;\">\ud83d\udcb0 Cash &amp; Banking Controls<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2237\" data-end=\"2369\">\u2022 Avoid cash transactions beyond prescribed limits<br data-start=\"2287\" data-end=\"2290\">\u2022 Ensure proper documentation of all transactions<br data-start=\"2339\" data-end=\"2342\">\u2022 Review loans &amp; advances<\/p>\n<hr data-start=\"2371\" data-end=\"2374\">\n<h2 data-section-id=\"1xtm0cz\" data-start=\"2376\" data-end=\"2413\" id=\"mcetoc_1jlgqn03v7\"><span class=\"ez-toc-section\" id=\"%F0%9F%93%82_Documentation_Audit_Readiness\"><\/span><span style=\"color: #3366ff;\">\ud83d\udcc2 Documentation &amp; Audit Readiness<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2415\" data-end=\"2558\">Prepare for audit by maintaining:<br data-start=\"2448\" data-end=\"2451\">\u2714 Invoices &amp; bills<br data-start=\"2469\" data-end=\"2472\">\u2714 Agreements<br data-start=\"2484\" data-end=\"2487\">\u2714 Bank statements<br data-start=\"2504\" data-end=\"2507\">\u2714 TDS records<br data-start=\"2520\" data-end=\"2523\">\u2714 GST returns<br data-start=\"2536\" data-end=\"2539\">\u2714 Payroll records<\/p>\n<hr data-start=\"2560\" data-end=\"2563\">\n<h2 data-section-id=\"1jf6xqq\" data-start=\"2565\" data-end=\"2608\" id=\"mcetoc_1jlgqn03v8\"><span class=\"ez-toc-section\" id=\"%F0%9F%93%85_Important_Due_Dates_March-End_Focus\"><\/span><span style=\"color: #3366ff;\">\ud83d\udcc5 Important Due Dates (March-End Focus)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2610\" data-end=\"2764\">Compliance | Due Date<br data-start=\"2631\" data-end=\"2634\">Advance Tax (Final Installment) | 15 March<br data-start=\"2676\" data-end=\"2679\">TDS Deposit (March) | 30 April<br data-start=\"2709\" data-end=\"2712\">TDS Return (Q4) | 31 May<br data-start=\"2736\" data-end=\"2739\">Form 16 Issue | 15 June<\/p>\n<hr data-start=\"2766\" data-end=\"2769\">\n<h2 data-section-id=\"1lo6key\" data-start=\"2771\" data-end=\"2803\" id=\"mcetoc_1jlgqn03v9\"><span class=\"ez-toc-section\" id=\"%E2%9A%A0%EF%B8%8F_Key_Risks_if_Not_Completed\"><\/span><span style=\"color: #3366ff;\">\u26a0\ufe0f Key Risks if Not Completed<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2805\" data-end=\"2979\">Failure to complete year-end activities may result in:<br data-start=\"2859\" data-end=\"2862\">\u2022 Expense disallowances<br data-start=\"2885\" data-end=\"2888\">\u2022 Interest &amp; penalties<br data-start=\"2910\" data-end=\"2913\">\u2022 Income tax notices<br data-start=\"2933\" data-end=\"2936\">\u2022 GST mismatches<br data-start=\"2952\" data-end=\"2955\">\u2022 Audit qualifications<\/p>\n<hr data-start=\"2981\" data-end=\"2984\">\n<h2 data-section-id=\"20nd6j\" data-start=\"2986\" data-end=\"3002\" id=\"mcetoc_1jlgqn03va\"><span class=\"ez-toc-section\" id=\"%F0%9F%8F%81_Conclusion\"><\/span>\ud83c\udfc1 <span style=\"color: #3366ff;\">Conclusion<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"3004\" data-end=\"3263\">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.<\/p>\n<p data-start=\"3265\" data-end=\"3396\">For a smooth closure, it is advisable to seek professional assistance for compliance review, tax planning, and audit preparation.<\/p>\n<p data-start=\"3398\" data-end=\"3501\">For any assistance with FY closing, compliance review, or tax planning, feel free to connect with us.<\/p>\n<\/body>","protected":false},"excerpt":{"rendered":"<p>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. \ud83e\uddfe Income Tax \u2013 Key Year-End Actions \u2714 &#8230; <a title=\"Financial Year Closing (FY 2025\u201326)\" class=\"read-more\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/\" aria-label=\"Read more about Financial Year Closing (FY 2025\u201326)\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":840,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81,12,5,57,40],"tags":[],"class_list":["post-836","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-advisory-services","category-accounting-financial","category-audit-assurance","category-auditing-services","category-itr"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Financial Year Closing (FY 2025\u201326) - Komplytek Blogs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/komplytek.com\/blogs\/financial-year-closing-fy-2025-26\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financial Year Closing (FY 2025\u201326) - Komplytek Blogs\" \/>\n<meta property=\"og:description\" content=\"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. 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