1. Year-end precaution under income-tax act
J B Nagar CPE Study Circle of WIRC of ICAI
Paras K Savla

2. Salary earners Submit proof of investment to employer
When employee has changed job during the year, submit details of income earned from previous employer or consider the same payment of advance tax at the time of each installment
Submit proof of LTA
Review of salary structure for next FY
Review salary structure of directors of private companies
Paras Savla
17/03/2019

3. Advance Tax Advance tax is required to be paid on
15 June
15 September
15 December
15 March (Assessee offering income u/s 44AD & 44ADA are required to pay advance tax on or before 15 March)
Where any person received any income without deduction or collection of tax he is liable to pay advance tax (S.209 amended w.e.f ).
Care to be taken to determine whether otherwise exempt income is being taxed due to non-compliance etc. contribution to recognised PF exceeding 12% of salary, interest on recognised PF exceed notified rate of 9.5%, etc.,
Any payment of tax on before 31 March would also be treated as advance tax paid during the financial year.
Any short fall (tax paid less than 100% of advance tax payable) can be paid be 31 March to avoid interest u/s 234B.
Paras Savla
17/03/2019

4. Purchase /Sale of depreciable assets
Sale of depreciable asset from the block of asset and block is negative value
Purchase of new asset
Purchase of new Asset
Claim for depreciation or additional depreciation
Make new asset put to use if not yet
Defer sale of depreciable assets to next financial year so as not to loose depreciation during the current year
Paras Savla
17/03/2019

5. Deduction allowed on payments
Municipal Taxes while computing income form HP - proviso to S.23(1)
All expenses-Cash system of Accounting
Chapter VIA deductions
80C – Various Investments etc.*
80CCC – Contribution to pension fund*
80CCD – National Pension Scheme*
[* aggregate deduction restricted to Rs1,50,000]
80D – Medical insurance premium and preventive health care expenses
80DD – deposit under any scheme for handicapped dependents
80E – interest paid on education loans
80G – Donations
80GG – Rent payments (assessee is non-receipt of HRA)
80GGA – Donation for scientific research or rural development (not having income chargeable under the head PGBP)
80JJAA – Employment to new employees [No. of employees vis-à-vis last year, salary paid] … PF Registration Scheme
Paras Savla
17/03/2019

6. Filing of ITR
Last date for filing of belated ITR u/s 139(4) for AY (incase assessment is not completed)
Non filing of ITR not only attract interest & penalties but can also lead to prosecution
Last date for filing revised ITR (including belated ITR) u/s 139(5) for AY
Non-discloser of required information in ITR e.g. foreign bank account can lead to initiation of prosecution
Paras Savla
17/03/2019

7. Linking of PAN/Bank with Aadhar
The ITD will be issuing e-refunds from March 1, 2019, onwards in the bank accounts of only those individuals who have linked their respective bank account number with the PAN
Individuals are required to validate the bank account with the income tax department e-filing portal to receive the income tax refunds 
U/s 139AA PAN will be considered invalid if it is not linked to Aadhaar by March 31
Paras Savla
17/03/2019

8. Capital Gains
If an assessee has taxable capital gains during the financial year ,
Try to identify his capital assets, especially shares, Mutual funds, debentures etc, which if sold during the financial year, will result into a capital loss, he can sale such assets on or before 31st March 2019 and book a capital loss which will help to set off against the taxable capital gain
This can a reduce or nullify the capital gains tax
As a matter of planning the same capital asset can again be purchased on or before 31st March and continued to be held.
Paras Savla
17/03/2019

9. Unabsorbed Losses
Verify carried forward unabsorbed losses under the head House Property / PGBP/Capital gains/IFOS which are about to expire
If carry forward is allowed upto 8 years, losses incurred during FY or AY would lapse during FY if not set off against eligible income
If the assesse has a possibility of having taxable Capital Gain for Financial Year , he should not postpone it to the next year, but book the gain on or before 31st March 2019 so as to set off the Capital loss of AY against the Capital Gain for FY
Paras Savla
17/03/2019

10. Trust Registration u/s 12AA Capital Gains earned by trust
Deduction is allowed u/s 11 & 12 for the FY to trust/institution who file application for registration anytime during FY and registration is obtained.
Capital Gains earned by trust
Deduction is allowed if gains are invested in another capital assets
Spend 85% of the income earned during the year also include unrealised income of earlier year received now e.g. TDS resulted in refund of IT and received
Accumulation of income of earlier year
Income can be accumulated upto 5 year
Income accumulated during FY and not applied for charitable purposes upto , would be taxable in the hands of trust
Paras Savla
17/03/2019

11. Cleanup Loan Accounts
Verify loan accounts and cleanup them up if necessary. If an assessee has given or taken any temporary loans, hand loans and are outstanding, try to repay / recover the same on or before 31st March 2019.
This will help in improving the balance sheet position of the ratio of assets and liabilities, Debt Equity Ratio etc. Temporary loans, hand loans can be again given or taken on or after 1st April 2019.
Since the balance sheet will be prepared as on 31st March 2019, try to square off the assets and liabilities which would show unfavourable position if not squared off on or before 31st March 2019
Paras Savla
17/03/2019

12. Others
Submission of 15H/15G declarations for income which would be credited on 31 March
Review turnover for the purpose of applicability of 44ADA and 44AD
Payment of undisputed statutory dues for more than 6 months, in case of company to avoid qualification in CARO reporting.
Filing of application for lower deduction of TDS for FY
CbC Report (local filing) in respect of reporting accounting years ending on or before 28th February, to be filed up to 31st March, 2019.
Paras Savla
17/03/2019

13. Thank you….
Paras Savla
17/03/2019