Income Tax:
Investment for Tax Deductions: Evaluate and make necessary investments eligible for deductions to reduce taxable income for the financial year 2023-24. Popular investment options include Public Provident Fund (PPF), Life Insurance Corporation (LIC), Equity Linked Savings Scheme (ELSS) Mutual Funds, Health Insurance, etc.
43B(h) compliance typically refers to a provision under Section 43B(h) of the Indian Income Tax Act, which outlines certain expenses that are allowed as deductions for income tax purposes only if they are actually paid. These expenses are typically related to employer contributions to funds such as provident funds, superannuation funds, gratuity funds, etc.
Under Section 43B of the Income Tax Act, certain payments are allowed as deductions only if they are actually paid by the due date of filing the return of income. If such payments are made after the due date but before the filing of the return, they can still be claimed as deductions.
Section 43B(h) specifically deals with contributions to funds, including:
Employer contributions to recognized provident funds
Employer contributions to approved superannuation funds
Employer contributions to gratuity funds
Contributions to other funds as specified in the Act
In order to be eligible for deduction under Section 43B(h), these contributions must be actually paid on or before the due date of filing the return of income.
Failure to comply with the provisions of Section 43B(h) may result in disallowance of the deduction, leading to additional tax liabilities for the taxpayer. Therefore, it's crucial for businesses to ensure timely payment of these contributions to remain compliant with the Income Tax Act.
TDS and TCS Provisions:
If your turnover for FY 2023-24 exceeds Rs. 10 Crores, be aware that TDS provisions under section 194Q and TCS provisions under section 206C(1H) will become applicable for FY 2024-25.
Transporter Declarations: Obtain declarations from transporters regarding non-deduction of TDS under section 194C.
Account Reconciliation: Reconcile and account for TDS and TCS credits in your books of accounts to ensure accurate financial reporting.