5 Things to do before 1st April 2019

Last Updated at: May 28, 2020
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5 Things to do before 1st April 2019
As a part of the Rs 20 lakh Crore economic booster dose announced on 13th May, the honourable Finance Minister has announced that the existing rates of TDS (Tax Deducted at Source) and TCS (Tax Collection at Source) will be reduced by 25% for the remaining part of FY 20-21. However, those who are yet to link their PAN with Aadhaar, will not be able to avail this benefit.

 

There are several things that one must complete certain processes every year before the completion of a financial year. A financial year usually ends on March 31st. The following are some of the essential things to be done before the month of April every year. This would help to avoid issues in your business.

With the current financial year about to close on 31st March 2019, an assessment of all our incomes will be processed by the Income Tax Department from 1st April 2019 onwards. Here is a quick 5 point reference list for all taxpayers to ensure that your tax liability is minimum.

As always if you’d like to know more about professional help on startups, registrations or
compliance, browse our services and find our how we do it differently from others.

 

  1. File Your Pending Income Tax Return for AY 18-19

 Although most taxpayers must have already submitted their Income Tax Returns (ITR’s) for the assessment year 18-19 (income earned during year 17-18), there may be a fraction of assesses whose return might still be pending. 1st April 2019 onwards, the return will not be allowed to be uploaded on the website. It is advisable to pay taxes with Interest and Late Filing fees than to undergo the harsh consequences of the IT Dept. Notice, increased tax liability and additional penalties levied by your assessing officer.

  1. Link your PAN with Aadhaar Card, if not done already

 Although the recent Supreme Court ruling states that Aadhaar Card is not mandatory for Bank Accounts and for continuing mobile SIM’s services, it still continues to be mandatory for your Income Tax assessments. The last date to link the two is 31st March 2019. The same may be updated on this link https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/LinkAadhaarHome.html

  1. Exhaust all possible deductions available

Ensure that deductions available under section 80 are used to the maximum. Here is a ready checklist

  • 80C: Insurance Premium of up to Rs 1.5 Lakh per year
  • 80 CCC: Amount deposited in annuity plan of LIC or another insurer
  • 80 CCD: Employee Contribution to NPS Account of up to Rs 1.5
  • 80 GG: Rent paid when HRA is not received from the employer
  • 80 D: Medical Insurance Premium of senior citizens of upto Rs 50,000 per year

80DDB: Medical Expenses of up to Rs 40,000 and Senior Citizens for upto Rs 1,00,000 per year for critical illness.

80 G: Donations towards social causes (Tax-free from 50 to 100 %)

Register Your Startup

  1. Pay your Advance Tax

 The onus is on the employer to deduct taxes from salaries of their employees and deposit the advance tax in time. However, if you have incomes other than salaries and bank interests exceeding Rs 10,000 a year, then it is advisable to deposit this tax on time.

Due Date Advance Tax Payable
On or before 15th June 15% of advance tax
On or before 15th September 45% of advance tax
On or before 15th December 75% of advance tax
On or before 15th March 100% of advance tax

However, 31st March is the last date for this financial year, the 4th instalment of your advance tax must be deposited before this date along with a penalty of 1 % on such outstanding amount. Not applicable for senior citizens who have no income from business or profession.

  1. Submit all outstanding bills to your employer

 Before the month ends, all medical bills, Leave Travel Allowance reimbursements (LTA) and car maintenance bills should be submitted to your employer in order to ensure all consistency and accuracy in accounting records and proper reimbursement.

Make sure that you complete all the above formalities before April 1st so that you avoid legal allegations. A professional attorney can help you in this regard who can take care of all the formalities as mentioned above. Thus business owners can remain stress-free and concentrate on the growth of their business.

0

5 Things to do before 1st April 2019

1440
As a part of the Rs 20 lakh Crore economic booster dose announced on 13th May, the honourable Finance Minister has announced that the existing rates of TDS (Tax Deducted at Source) and TCS (Tax Collection at Source) will be reduced by 25% for the remaining part of FY 20-21. However, those who are yet to link their PAN with Aadhaar, will not be able to avail this benefit.

 

There are several things that one must complete certain processes every year before the completion of a financial year. A financial year usually ends on March 31st. The following are some of the essential things to be done before the month of April every year. This would help to avoid issues in your business.

With the current financial year about to close on 31st March 2019, an assessment of all our incomes will be processed by the Income Tax Department from 1st April 2019 onwards. Here is a quick 5 point reference list for all taxpayers to ensure that your tax liability is minimum.

As always if you’d like to know more about professional help on startups, registrations or
compliance, browse our services and find our how we do it differently from others.

 

  1. File Your Pending Income Tax Return for AY 18-19

 Although most taxpayers must have already submitted their Income Tax Returns (ITR’s) for the assessment year 18-19 (income earned during year 17-18), there may be a fraction of assesses whose return might still be pending. 1st April 2019 onwards, the return will not be allowed to be uploaded on the website. It is advisable to pay taxes with Interest and Late Filing fees than to undergo the harsh consequences of the IT Dept. Notice, increased tax liability and additional penalties levied by your assessing officer.

  1. Link your PAN with Aadhaar Card, if not done already

 Although the recent Supreme Court ruling states that Aadhaar Card is not mandatory for Bank Accounts and for continuing mobile SIM’s services, it still continues to be mandatory for your Income Tax assessments. The last date to link the two is 31st March 2019. The same may be updated on this link https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/LinkAadhaarHome.html

  1. Exhaust all possible deductions available

Ensure that deductions available under section 80 are used to the maximum. Here is a ready checklist

  • 80C: Insurance Premium of up to Rs 1.5 Lakh per year
  • 80 CCC: Amount deposited in annuity plan of LIC or another insurer
  • 80 CCD: Employee Contribution to NPS Account of up to Rs 1.5
  • 80 GG: Rent paid when HRA is not received from the employer
  • 80 D: Medical Insurance Premium of senior citizens of upto Rs 50,000 per year

80DDB: Medical Expenses of up to Rs 40,000 and Senior Citizens for upto Rs 1,00,000 per year for critical illness.

80 G: Donations towards social causes (Tax-free from 50 to 100 %)

Register Your Startup

  1. Pay your Advance Tax

 The onus is on the employer to deduct taxes from salaries of their employees and deposit the advance tax in time. However, if you have incomes other than salaries and bank interests exceeding Rs 10,000 a year, then it is advisable to deposit this tax on time.

Due Date Advance Tax Payable
On or before 15th June 15% of advance tax
On or before 15th September 45% of advance tax
On or before 15th December 75% of advance tax
On or before 15th March 100% of advance tax

However, 31st March is the last date for this financial year, the 4th instalment of your advance tax must be deposited before this date along with a penalty of 1 % on such outstanding amount. Not applicable for senior citizens who have no income from business or profession.

  1. Submit all outstanding bills to your employer

 Before the month ends, all medical bills, Leave Travel Allowance reimbursements (LTA) and car maintenance bills should be submitted to your employer in order to ensure all consistency and accuracy in accounting records and proper reimbursement.

Make sure that you complete all the above formalities before April 1st so that you avoid legal allegations. A professional attorney can help you in this regard who can take care of all the formalities as mentioned above. Thus business owners can remain stress-free and concentrate on the growth of their business.

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Avani Mishra is a graduate in law from the National Law Institute University, Bhopal. She qualified the Company Secretary course with an All India Rank 1 and is a recipient of the President’s Gold Medal for her academic distinctions. She also holds a B.Com degree with a specialization in Corporate Affairs and Administration.