Things to Do Before 31st March 2025: A Comprehensive Checklist

Income Tax Compliance

• Advance Tax Payment: Ensure the last installment of Advance Tax is paid before 15th March 2025 to avoid interest under Sections 234B and 234C.
• Filing of Updated Return (ITR-U): If you need to revise or update your Income Tax Return for FY 2021-22, the last date to file ITR-U is 31st March 2025.
• Tax-Saving Investments: Make tax-saving investments under Section 80C (PPF, ELSS, Life Insurance, etc.) and 80D (Health Insurance Premiums) before 31st March 2025 to claim deductions.

GST Compliance

• Books Reconciliation: Ensure your financial books match with GST filings for FY 2024-25 to avoid mismatches and penalties.
• GSTR-1 vs. GSTR-3B: Verify that sales reported in GSTR-1 match with GSTR-3B to avoid scrutiny.
• GSTR-1 vs. E-Way Bill: Reconcile outward supply data in GSTR-1 with E-Way Bills to ensure compliance.
• GSTR-1 vs. E-Invoice (if applicable): Businesses under the e-invoicing system must reconcile GSTR-1 data with e-invoices for accuracy.
• ITC Reconciliation: Match Input Tax Credit (ITC) in books with GSTR-3B and GSTR-2B ( or GSTR-2A) to claim correct ITC.
• GSTR-3B vs. GSTR-2B: Ensure that ITC claimed in GSTR-3B aligns with auto-populated GSTR-2B data.
• Reversal Provisions (Rule 42, 43 & Section 17(5)): Reverse ITC where required, especially for blocked credits under GST.
• GST LUT Application (For Exporters): Apply for Letter of Undertaking (LUT) for FY 2025-26 to export goods/services without IGST.
• Composition Scheme Opt-In: If eligible, opt for the Composition Scheme before 31st March 2025 for the next financial year.

Books Reconciliation

• TDS & TCS Compliance: Verify Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) payments and reports.
• AIS/TIS Verification: Match books with Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) to avoid discrepancies in tax filings.
• GST vs. Income Tax Reports: Ensure alignment between GST returns and income tax filings to prevent compliance issues.

Turnover Threshold Limit Check

• GST Registration Applicability: Verify if your business crossed the turnover limit for GST registration (₹20 lakh for services, ₹40 lakh for goods in most states).
• Composition Scheme Eligibility: Check eligibility for the Composition Scheme under GST based on turnover.
• Return Filing Applicability: Identify any new return filing obligations (such as GSTR-9, GSTR-9C, etc.) based on turnover.
• Presumptive Taxation: Assess whether you qualify for Presumptive Taxation under Section 44AD/44ADA/44AE for small businesses, professionals, or transporters.

Action Plan

• Start reconciliation early to avoid last-minute errors.
• Use accounting software or GST reconciliation tools for accuracy.
• Consult a tax professional if needed for compliance.