New Tax Rules effective from 1st Apr 2024

List of financial and tax rules or best practices (Income Tax, GST TDS) that a taxpayer must follow starting with FY 2024–25 to save and be compliant from 1st April 2024 or to be completed by March 31st 2023.

1. Updated Income Tax Returns for AY 2021-22:

31st March 2024 is the last date for filing Updated Income Tax Returns for AY 2021-22. Post 31st March 2024, one cannot file updated income tax returns for AY 2021-22.

Refer Updated Return for more information.

2. Advance Tax for FY 2023-24:

31st March 2024 is the last date for payment of advance taxes by all the taxpayers for FY 2024-25. Post 31st March 2024, the taxpayers are required to pay interest u/s 234B.

Refer Advance Tax more information.

3. Investment in Tax Saving Instruments:

The taxpayers who wants to claim tax savings deductions under Old Tax Regime are required to make the investments in Tax Saving instruments before 31st March 2024 for FY 2023-24.

Refer Tax Savings Investment for more information.

4. Filing of Form 26QB/26QC/26QD/26QE:

The taxpayers who has deducted TDS on certain payments for the February 2024 are required to file Form 26QB, 26QC,26QD and 26QE before 30th March 2024.

Refer Comprehensive Tax Calendar for FY 2024-25.

5. Respond to Income Tax Notices:

31 st March 2024 is the limitation date for most of the scrutiny notices. Hence it is advisable for the taxpayers whose PAN got selected for Scrutiny u/s 143(2), 147 etc to be more conscious and respond to notices on time to avoid penalties and huge outstanding demands.

Refer How to Handle Income Tax (IT) Department Notices?

6. Booking of Expenses and Income by the Business:

All the business including sole proprietorship, Firms, LLP, Private Limited Companies etc are required to maintain books of accounts and book the corresponding expenditure and income for FY 2023-24 before 31 st March 2024. Also the TDS deductions also needs to be done on the expenses at applicable rates.

Refer How owning a Business Save on Taxes ?

7. Close the Books of Accounts:

All the business including sole proprietorship, Firms, LLP, Private Limited Companies etc are required to plan the closure of books of accounts for FY 2023-24 before 31 st March 2024 to ensure proper compliance and filing of Income tax returns.

Refer Year end closing for more information.

8. Tax Loss Harvesting:

The traders or investors in stock market who wants to reduce or offset taxes on capital gains can book losses on other stocks before 31 st March 2024.

Refer Taxation on — Futures & Options (FOs) Trading to understand and harvest losses from F&Os, which is very common.

9. Re-Financing your Home Loan:

As the Home loan interest rates are changing every quarter, the taxpayers are required to assess the Home Loan interest rates, select the new lender and ensure the process is completed before the end of financial year i.e., 31 st March 2024.

Refer Re-Financing your Home Loan for more information.

10. Starting a New Business:

If you want to start a new business in new financial years, the registrations like business registration, GST, PAN etc and paper work needs to be completed by 31 st March 2024 to ensure smooth compliance.

Refer Starting a new business steps for more information.

11. Conversion of Regular GST to Composition Scheme:

If you are a taxpayer who is registered under regular GST and wants to convert to Composition scheme for FY 2024-25, you are required to file CMP-02 before 31 st March 2024.

Refer Regular GST to Composition Scheme for more information.

12. File Letter of Undertaking (LUT) for FY 2024-25:

If you are a taxpayer registered under GST and having exports and sales to SEZ, file LUT for FY 2024-25

13. Bank Locker Charges:

If you are owning a bank locker, the bank locker charges are required to be paid before the start of the financial year. Hence it is recommended to pay the bank locker charges before 31 st March 2024 to avoid the unnecessary consequences.

Refer Bank Lockers (Safe Deposit Box) - a Complete Guide for more information.