Arjuna (Fictional Character): Krishna, Currently the T-20 Cricket World Cup is on. Dhoni’s stumping in the India v/s Bangladesh match is all over the news. The Financial Year’s end, i.e. March end has arrived. Keeping this in mind, what should the taxpayers do, so that he will not get stumped?
Krishna (Fictional Character): Arjuna, India V/s Bangladesh match was really exciting and thrilling. Dhoni’s last ball plan was appreciable. Synonymous to the game of cricket, the crease line i.e. tax deadline is 31st March, players batting are the taxpayers, and wicket keeper and fielders are the tax officers. You would be stumped out if you do not reach the crease line in time, similarly if taxpayers do not follow the deadline of 31st March, then they can be stumped out. That is if tax is not paid within time, then one has to pay interest, penalty, late fees, etc. according to various laws. Scrutiny, enquiry, assessments, notices are generally issued to those taxpayer who do not follow tax rules in time.
Arjuna: Krishna, What work should taxpayers complete before 31st March, related to Income Tax, so that they will not get stumped?
Krishna: Arjuna, Taxpayers should follow following things, to not get stumped:
1. To claim deduction under section 80C e.g. provident fund, insurance, etc., investment should be made before 31st March.
2. Salaried persons should provide the details of investments to employer, so that less TDS will be deducted in the month of March.
3. If advance tax is not paid before 15th March, then it should be paid before 31st March, so that less interest will be levied.
4. If Income Tax return of March 2014 is not filed, then it can be filed before 31st March 2016.
5. If there is a difference in 26AS and Income as per income tax return, enquiry may come.
6. If turnover of business is more than 1 crore, then tax audit is required to be done.
7. Taxpayers should maintain the details of interest received, paid and TDS thereon.
8. Payment made to a person in a day should not be more than Rs.20,000/-
9. Taxpayers to whom tax audit is applicable, TDS is to be deducted on specific businesses.
10. Income tax related all information is available on www.incometaxindia.gov.in website.
Many more works are there as per the category of the assesse. So please take care.
Arjuna: Krishna, what aspects should taxpayers complete before 31st March related to VAT, Profession Tax, so as to not get stumped?
Krishna: Arjuna, Taxpayers should follow following things, to not get stumped:
1. MVAT and Profession Tax related information is available on www.mahavat.gov.in website.
2. MVAT taxpayers are now required to give bill wise details of sales and purchases from April month’s return. Pre-preparations for the same are to be done.
3. If turnover is more than Rs.10 Lakhs, then VAT registration is compulsory.
4. Information given in Dealer Master System like mismatch report, details of return filed, tax payment details, etc. should be verified properly.
5. If turnover of business is more than RS. 1 crore, then VAT audit is compulsory.
6. If VAT set-off is more than Rs.5 Lakhs, then it cannot be carry forward to next year.
7. Taxpayers who has deducted Professional Tax of employees, and if annual tax is less than Rs.50,000, then he will have to file Profession Tax return before 31st March for the period March to February.
Arjuna: Krishna, What tasks should taxpayers complete before 31st March related to Service Tax?
Krishna: Arjuna, Taxpayers should follow following things, to not get stumped:
1. If services are provided for more than Rs.10 Lakhs, then service tax is applicable.
2. Service Tax payment due date for company taxpayer’s for the month of March, and other taxpayers for the quarter January to March is 31st March.
3. Every Service Taxpayer for the said period should calculate Service Tax and pay before 31st March., by considering Services provided, along with the bills, etc.
Arjuna: Krishna, What work should Taxpayer in Business complete before 31st March, so as to avoid stumping?
Krishna: Arjuna, Taxpayers should follow following things, to not get stumped:
1. Closing Stock: In business world Profit and Loss account has great importance. Closing Stock is the base of this Profit and Loss Account. It is useful for Cash Credits with Banks, Insurance, and in many other business related work.
2. Taxpayer should reconcile the Debtors and Creditors balance. That is, taxpayer should verify the balance of his books of accounts with that of balance confirmation statement provided by them.
3. Bank and Loan Statement Reconciliation: It is very important that, taxpayers should reconcile all the bank and loan accounts at March end.
4. Taxpayer should prepare projected and comparative balance sheet and profit and loss account, so that they can know previous year’s turnover, profit, loss, expenses, etc.
Arjuna: Krishna, What should we learn from March ending’s work pending, otherwise stumping?
Krishna: Arjuna, through-out the year, taxpayers work really hard to earn money and perform monetary transactions, and constant efforts and time to repay loans. In this competitive world, he is playing his household and business responsibilities. If tax related work remains pending, and not completed within time, taxpayers will face stumping. This inadvertently results in a loss of the hard earned money via penalties, etc. due to tax not paid within time. What happened to Bangladesh, should not happen with taxpayers, and therefore they should cross crease line within time, i.e. follow tax rules!
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