In line with the evolving tax landscape, several amendments and recommendations are set to take effect from April 1, 2024. These changes aim to enhance tax compliance and streamline processes for taxpayers. Below are some key updates to be mindful of:
1. New Tax Invoice Series for FY 2024-25:
To ensure clarity and efficiency in tax documentation, a unique series of tax invoices specific to the financial year 2024-25 is advised. It is recommended to implement distinct series for each GST registration, simplifying invoice identification and verification.
2. E-Invoicing Requirement for Turnovers Exceeding Rs. 5 Crore:
Businesses with turnovers exceeding Rs. 5 Crore in FY 2023-24 are mandated to commence E-Invoicing from April 1, 2024. This digital invoicing system aims to enhance transparency and reduce tax evasion.
3. Updated Income Tax Return (ITR) Filing Deadline:
The deadline for filing updated Income Tax Returns (ITRs) for the financial year 2020-21 is March 31, 2024. Taxpayers are urged to ensure timely submission to avoid penalties.
4. Advance Tax Payment Deadline Extension:
Taxpayers who missed the last installment of advance tax payment until March 31, 2024, are granted an extension to settle their dues. It is advised to fulfill these obligations promptly to avoid any financial implications.
5. Timely Payment of MSME Dues:
Adhering to Rule 43(B)(H), timely payment of dues to Micro, Small, and Medium Enterprises (MSMEs) is crucial. Non-compliance may result in penalties, emphasizing the importance of meeting these obligations on time.
6. Tax Planning and Investment Strategies:
Taxpayers are encouraged to engage in tax planning activities and explore investment avenues before the fiscal year-end on March 31, 2024. This ensures optimal utilization of tax-saving opportunities and financial resources.
7. Long-Term Capital Gain Tax Harvesting:
Utilize tax harvesting strategies to optimize long-term capital gains and leverage set-off rules to minimize tax liabilities. Strategic planning can help maximize tax benefits within the legal framework.
8. Correct Filing of Form 10B/10BB:
Entities required to furnish Form 10B/10BB for FY 2022-23, submitted using an incorrect form, are advised to rectify the error by filing the appropriate form before the deadline of March 31.
9. Diligent Filing of TDS Returns:
Exercise caution while filing TDS returns, ensuring accurate reporting. Failure to link PAN with Aadhaar may result in a higher TDS deduction rate of 20%, emphasizing the importance of compliance.
10. Important Steps for Exporters:
Exporters are advised to apply for a Letter of Undertaking (LUT) in Form GST RFD 11 for the financial year 2024-25 to facilitate exporting goods/services or supplying to Special Economic Zones (SEZ) without payment of GST from April 01, 2024, onwards.
11. Enrolment for Composition Scheme FY 2024-25:
The GST Portal will be open until March 31, 2024, for taxpayers interested in enrolling in the composition scheme for the financial year 2024-25. To apply, taxpayers should file Form CMP-02 by navigating to ‘Services -> Registration -> Application to Opt for Composition Levy’.
12. Filing of ITC-03 for Transition to Composition Scheme:
Taxpayers transitioning from regular taxpayers to composition taxpayers must file ITC-03 within 60 days from the commencement of the financial year, i.e., on or before 30th May 2024.
13. Time Limit to Opt Out from QRMP Scheme:
Taxpayers with a turnover below Rs. 5 Crores have the option to select the frequency of GST return filing for FY 2024-25 until 30th April 2024.
14. Time Limit for Availing ITC for FY 2023-24:
Taxpayers should avail the Input Tax Credit (ITC) pertaining to FY 2023-24 until 30th November 2024 or the date of filing the Annual return for FY 2023-24, whichever is earlier.
15. Time Limit for Issuance of Credit Notes under GST for FY 2023-24:
Credit Notes for supplies made during FY 2023-24 can be issued but not later than 30th November 2024 or the date of filing the Annual return for FY 2023-24, whichever is earlier.
These regulatory changes signify the evolving tax landscape and underscore the importance of proactive compliance and strategic financial planning. It is essential for taxpayers to stay informed and adhere to the updated guidelines to fulfill their tax obligations effectively.
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How long / short term capital gains on equity/ mutual fund is calculated? What is the exemption limit ? Can we club capital gain income with other income and calculate tax together?
How long / short term capital gains on equity/ mutual fund is calculated? What is the exemption limit ? Can we club capital gain income with other income and calculate tax together?
It was good update on 25th
march, had it been known by 15th March it would have been very useful for Tax planning. Thanks
Gst ke regular scheme me without audit ke minimum se minimum kitna margin so kar sakte hai. 40lakh ke turn over hai