Why Reconciliation With Income Tax?
Income tax return filing: The income tax returns along with with statement of profit and loss account and balance sheet are to be filed with income tax department every financial year. Now, It is very important that correct and accurate data summited to income tax department. Thus it becomes most important to reconcile the accounting data with that of the income tax.
Audit report: Those businesses which have turnover exceeding certain limit shall compulsorily file income tax audit report along with audited financial statement. Any discrepancy or variations found in accounting data and income tax report will lead to scrutiny or investigation against assessee. Thus, there has to be much accuracy in accounts. That’s why we always prefer reconciliation of accounting data with that of the income tax audit report.
For scrutiny and appeals: While going through scrutinies, the assessing officer of income tax departments may demand certain reports of books of accounts. In such cases, if the books of accounts and income tax returns or audit report do not match with each other then it can cause serious damage on the part of assessee and assessee may loose handsome amount of money due to irregularity and inaccuracy.
For Income tax refund: Many a times it happens with anyone that TDS may get deducted more than the assessee is actually liable to pay tax. In such scenario, an assessee is eligible to get refund of excess TDS deducted on his account. If we ignore the reconciliation with income tax, assessee loose those handsome amount of Income tax refund, which we never want in any case. So for the benefit of our client we always advice to get your accounts reconciled with Income tax so that you can get refund for which you are eligible under income tax act.
Here we will tell you about are various things you need to know about Income Tax Calculator.
You find any difficulty, then using this is a good idea.
Return for the period of September is the last Return for making all the amendments & adjustments for the previous year.
Suppose, for example for the year 2020-21, GSTR 3B and GSTR 1 is the last return for filling all the amendments of the transactions related to the period April 2020 to March 2021.The following actions have to be taken before filing GST Return for the month of September :Reconcile Sales Turnover reported in GSTR 1 with that of BooksReconcile Sales Turnover reported in GSTR 3B with that of BooksCheck whether all the credit notes issues has been declared in GSTR 1 or not and the effect of the same is taken in GSTR 3B.Reconcile if invoices raised to customers are reported in B2B (customers with GSTIN) or in B2C (Unregistered customer)Reconcile whether all the advances have been reported in GSTR 3B and GSTR 1Reconcile whether the GST paid on advances have been adjusted once the invoice is issued or notReconciliation of ITC from GSTR 2A/2B with Inward RegisterFollow up with the vendors whose ITC is not appearing in GSTR 2B / GSTR 2ACheck whether all the debit notes issued to you have been reflected in GSTR 2A/2B or not.Reverse all the ineligible ITCReconcile HSN Summary with that of Sales Turnover.No additional claim of missing ITC may be made available post-filing of September GSTR 3B return.
Please thoroughly follow the above checklist before you file any September GST returns.The information provided in the Taxzona Blog does not constitute any legal, tax or financial advice.
It does not take into account your particular circumstances, objectives, legal and financial situation or needs.
Before acting on any information in the Taxzona Blog you should consider the appropriateness of the information for your situation in consultation with a professional advisor of your choosing.
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