Comprehensive Guide to Income-Tax Act, 1961 Compliances for Financial Year 2024-25

 Navigating the myriad of compliance requirements under the Income-tax Act, 1961 can be daunting for individuals and businesses alike. For the financial year 2024-25, it is crucial to be aware of various compliance obligations that span across different intervals: yearly, half-yearly, quarterly, monthly, and event-based. This comprehensive guide breaks down these compliances to ensure you remain compliant and avoid penalties.

Yearly Compliances

Yearly compliances are critical for maintaining the financial health and legality of your business operations. These obligations are typically fulfilled once a year and include key filings and reports that reflect your financial activities for the entire fiscal year.

1. Filing of Income Tax Returns (ITR)

• Due Date for Individuals and Non-Audit Cases: 31st July 2024
• Due Date for Audit Cases: 30th September 2024
• Due Date for Transfer Pricing Cases: 30th November 2024

2. Tax Audit Report

Due Date: 30th September 2024

Applicable for individuals and entities required to undergo tax audits under Section 44AB.

3. Filing of Annual Financial Statements

Due Date: 30th September 2024

Required for companies, this includes filing balance sheets and profit and loss accounts with the Registrar of Companies (ROC).

Half-yearly Compliances

Half-yearly compliances ensure that your tax obligations are met twice a year, providing a mid-year review and adjustment opportunity for your financial strategies.

1. Filing of TDS Returns

Due Dates: 31st October 2024 and 30th April 2025

For deductions made under various sections such as 192, 194, etc.

Quarterly Compliances

Quarterly compliances help in the regular monitoring and payment of taxes, ensuring that financial and tax planning is more manageable and less burdensome at the year-end.

1. Payment of Advance Tax

Due Dates:

• 1st Installment: 15th June 2024 (15% of advance tax)
• 2nd Installment: 15th September 2024 (45% of advance tax)
• 3rd Installment: 15th December 2024 (75% of advance tax)
• 4th Installment: 15th March 2025 (100% of advance tax)

2. Filing of TDS Returns

Due Dates:

• Q1: 31st July 2024
• Q2: 31st October 2024
• Q3: 31st January 2025
• Q4: 31st May 2025

Monthly Compliances

Monthly compliances involve regular, smaller tasks that keep your business on track with tax obligations and financial health checks throughout the year.

1. Payment of TDS

Due Date: 7th of the following month

For taxes deducted on salaries, payments to contractors, rent, etc.

2. Payment of TCS (Tax Collected at Source)

Due Date: 7th of the following month

For taxes collected on specified goods.

Event-based Compliances

Event-based compliances are triggered by specific actions or events within your business, requiring timely and precise responses to maintain compliance.

1. Filing of Form 60/61

Required when a transaction requiring PAN is undertaken by a person not having a PAN.

2. Issuance of TDS Certificates (Form 16/16A)

Due Dates:

• Form 16: 15th June 2024
• Form 16A: Within 15 days from the due date of TDS returns filing.

3. Transfer Pricing Report (Form 3CEB)

Due Date: 30th November 2024

Applicable for entities entering into international or specified domestic transactions.

4. Form 15CA/15CB for Remittances

Due Date: Before making foreign remittances

Required to be furnished for transactions that are subject to withholding tax.

Staying updated with these compliance requirements is essential to ensure smooth business operations and avoid penalties under the Income-tax Act, 1961. Proper planning and timely execution of these tasks will not only keep you compliant but also help in efficient financial management.

For the financial year 2024-25, it is advisable to maintain a compliance calendar and consult with tax professionals to ensure all deadlines are met and all required documents are duly filed. This proactive approach will ensure that you are always on the right side of the law and can focus on the growth and success of your business.

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