Start Your Financial Year Like a Pro and be April Sages

Introduction-

As this new financial year 2024-25 starts, taxpayers wish to have such guidance on channelising its hurdles without losing control and falling in financial digs. Here are few important aspects to keep in consideration to make sure that your financial yar starts with giving you new profits without following the mistakes done in previous fiscal year.

Most of the taxpayers keen to know about the things they should remember from the start of the year so they do not commit the mistakes they did in previous years. So here are few tips to avoid those mistakes and attain new profits like a pro.

Things to Remember at the start of Fiscal 2024-25 related to Income Tax-

1. Assess the past year turnover and if it falls within the threshold limit of MSME then one should obtain the Udyam Registration and should provide the details related to their buyers.
2. Get the details of the suppliers who has taken Udyam registration and is making the payment to all those suppliers under 45 days ( payment of purchase done from 15/02/2024 to 31/03/2024 should be done before 14/05/2024) considering 45 days period to avoid disallowance of expense in fiscal 2023-24.
3. Previous year, if the turnover exceeds 10 crore then the taxpayer shall deduct TDS u/s 194Q or collect TCS u/s 206C(1H) @0.1%, if the total purchase is beyond 50 lakh in 2024-25.
4. Have an eye on the Inoperative PAN status of all deductees and if PAn found inoperative then deduct TDS @20%.
5. Download and check 26AS again and AIS of Annual year 2-22-23 & 2023-24 and if any income is not reported in ITR then one should file the updated return.
6. Evaluate the turnover of financial year 2023-24 and check the applicability of Tax audit (Rs. 1 crore or 10 crore) followed by checking the eligibility for presumptive tgaxation (Rs. 3 crore).
7. If Business resumes in the old scheme then one should file form 10 IEA before filing ITR of 2023-24.

Things to Remember by Taxpayer related to GST-

1. If the turnover in previous financial year is beyond 5 crore, then it is necessary to do e-invoicing from April 1, 2024.
2. A taxpayer with turnover in previous year does not exceeds Rs. 1.5 crore, then one has the option to opt for Composition Scheme in 2024-25.
3. A taxpayer with turnover less than 5 crore then one has the option to opt for QRMP scheme in 2024-25.
4. New billing series can be started for fiscal 2024-25.
5. Exporters or suppliers of SEZ units ought to mention LUT number (of new LUT filed for 2024-25) on the invoices issied w.e.f. April 1, 2024.

Conclusion-

So, as we are entering in new financial year, let us not be made April Fools when things are about finances. Just like April 1st pranks, finances can also bring unexpected tricks if not taken care of. Let us be smart in place of fools and turn April Fools into April Sages with wise decisions.

This article highlights crucial aspects of commencing new financial year. With the understanding of things discussed in the article above, one can master the art of finance be it business or any individual.