Income Tax Checklist 31 March 2024: Key Year-End Tax Planning Steps
As the financial year closes, taxpayers should ensure all income tax compliance checklist items are completed before 31 March 2024. This Income Tax Checklist 31 March 2024 highlights critical actions to take for smooth filing and compliance for FY 2023–24 and AY 2024–25.
1. Investment and Donation Deductions under Old Regime
Taxpayers opting for the old tax regime and intending to avail deductions under sections such as 80C, 80D, and 80G must make their eligible investments or donations before 31 March 2024.
These deductions will be reflected in the income tax filing for FY 2023–24.
2. Advance Tax Payment before 31 March 2024
If taxpayers have missed paying advance tax by 15 March 2024, they must make the payment before 31 March 2024. Timely payment helps minimize interest liability and ensures income tax compliance.
3. Filing of Updated Income Tax Returns (u/s 139 (8A))
Taxpayers can file an updated income tax return within 24 months from the end of the relevant assessment year. For FY 2020–21, the updated return can be filed by 31 March 2024, subject to an additional 50% tax payment.
4. Last Chance to File Updated Return for FY 2021–22
This is the final opportunity to file the updated income tax return for FY 2021–22 by paying only 25% additional tax. After 31 March 2024, the additional tax rate increases to 50%.
5. MSME Compliance under Section 43B(h)
Ensure Section 43B(h) compliance for timely payments to Micro and Small Enterprises (MSEs) as per Section 15 of the MSMED Act, 2006:
- Without a written agreement – payment must be made within 15 days.
- With a written agreement – payment must be made within 45 days.
Failure to comply may lead to disallowance of expenses under the Income Tax Act.
6. TDS and TCS Applicability under Sections 194Q and 206C(1H)
If the turnover for FY 2023–24 exceeds ₹10 crores, and purchases exceed ₹50 lakhs during the year:
- TDS provisions under Section 194Q apply to the purchaser.
- If TDS is not deducted, the seller must deduct TCS under Section 206C(1H) applicable from FY 2024–25.
This is a crucial part of the income tax compliance checklist.
7. TDS Declaration from Transporters under Section 194C
Obtain declarations from transporters confirming non-deduction of TDS if they own 10 or fewer vehicles at the time of the transaction, as per Section 194C of the Income Tax Act.
8. Reconciliation of TDS and TCS Credits
Ensure reconciliation and proper accounting of all TDS and TCS credits in the books of accounts. This helps in accurate reporting during income tax filing for FY 2023–24 and avoids mismatches with Form 26AS.