The financial year-end is only a couple of months away. So, it is time, you take the necessary steps associated with year-end compliance, and prepare for the upcoming FY. Here are seven things every business owner must do before the end of every financial year.
- Calculate Payable Advance Tax
Paying the income tax on time is imperative from the viewpoint of compliance. So, you must start working towards your tax liability by calculating the taxable income. Ensure that your advance tax reaches the central government before March 31 and you get your challan serial number on or before it.
- Invest to Save Tax
Make investments that are eligible for deductions under Chapter VI A. For instance, individuals, and HUFs are entitled to deduction under section 80C of the Income Tax. It is for a deduction up to an investment amount of INR 1, 50, 000, and an additional deduction of INR 50,000 under section 80 CCD for investments in the National Pension Scheme (NPS). Ensure you understand the terms and conditions.
- File the Income Tax Returns
Keep your income tax return up to date. Don’t delay filing the income tax returns of your business. Calculate the returns through a qualified and certified chartered accountant. Ensure you fulfill this compliance.
- Calculate the GST Turnover
If your annual business turnover is over 20 lakhs, you will have to file the GST. Make sure you calculate the GST accurately and pay it on time. Hire a GST expert if you don’t have the human and technological muscle to ensure GST compliance.
- Reconcile the GST Ledgers
Business owners pay GST payments either through a tax credit, or challan payments. As a taxpayer, you must reconcile the Credit Ledger, Cash Ledger, and the Liability Ledger on the GSTN portal with the accounting books. Ensure you do all the entries before the year-end. Later on, you must also reconcile credit notes, debit notes, discount, and the rate difference as well. read more about GST services
- Manage the Professional Income and Expenses
Professions that follow the cash system of accounting can deduct business expenses only if the owners pay them on or before March 31. Hence, owners must make the payments before March 31.
They must deposit all the professional receipts in the bank account before March 31, and keep to for submission in the next year. It is because the payer must have deducted TDS on it. He will show the amount paid to you, along with the corresponding TDS, and file it.
- Clean your Loan Accounts
If a temporary, or hand loan is outstanding, you must try and repay it on or before March 31. It helps you improve the balance sheet position of your assets and liabilities. Besides, your balance sheet will be prepared as on March 31. So, try to settle the asset and liabilities that may not show a favorable position, if they aren’t settled on or before March 31.
Not complying with government rules and regulations may end you up in penalties, and other complications. Don’t let it happen with your business. Connect with ANGCA for more assistance.