Approaching 31 March Key Considerations

 

Aspects to Consider with the Year End Round the Corner

31 March marks the close of the financial year, a critical milestone for individuals and organisations alike. For businesses, it is the point at which books of account are closed and financial statements are finalised. For salaried taxpayers, it signals the need to take stock of income, taxes paid, and eligible deductions. Societies, charitable institutions, and similar associations also use this period to complete accounts and prepare for statutory meetings and compliances. With the year end approaching, a timely and structured review can help avoid last-minute stress and ensure compliance.

1. Review of Accounts and Documentation
Businesses should ensure that all transactions up to 31 March are properly recorded. This includes sales, expenses, accruals, provisions, depreciation, and year-end adjustments such as inventory valuation. Supporting documentation - bills, contracts, bank statements, and confirmations - should be collated and reconciled. Early identification of gaps allows time for rectification before audit or finalisation.

2. Tax Planning Before the Cut-off
From an income tax perspective, 31 March is the final opportunity to implement legitimate tax planning measures for the year. Businesses may review provisions for statutory dues, bonus, gratuity, and other allowable expenses. Individuals, particularly salaried taxpayers, should evaluate whether they have fully utilised eligible deductions and exemptions, such as those linked to investments, insurance, or specified expenditures. Decisions taken after 31 March generally have no impact on the tax liability for the year just ended.

3. Advance Tax and TDS Compliance
Verification of advance tax paid vis-à-vis actual liability is crucial, especially for businesses and professionals. Any shortfall may attract interest. Similarly, reconciliation of tax deducted at source (TDS) with books helps ensure that credits are correctly reflected for deductees, reducing disputes at the return-filing stage.

4. Statutory and Regulatory Compliances
Beyond income tax, entities should review compliance under GST, labour laws, and other applicable statutes. Reconciliation of GST returns with books, verification of input tax credit, and timely payment of dues are particularly important. For societies and charitable institutions, adherence to conditions prescribed under their governing laws and tax registrations should be reviewed.

5. Planning for the Next Financial Year
Year end is not only about closure but also about preparation. Reviewing performance, cash flows, and tax outgo provides valuable insights for budgeting and structuring transactions in the coming year. Documentation of key decisions and policies also aids continuity and governance.

In essence, proactive attention in the final weeks of the financial year can significantly reduce compliance risks, optimise tax outcomes, and set a strong foundation for the year ahead.

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