Salaried Taxpayer? Income Tax and GST Tasks Before March 31 Deadline

As the financial year draws to a close, March 31 becomes a crucial date for taxpayers across India. Both individuals and businesses must ensure that a range of tax-related compliances under the income tax and GST frameworks are completed on time. Missing these deadlines can result in loss of financial benefits, along with penalties, interest charges, and late filing fees. Careful planning and timely action help ensure a smooth transition into the new financial year.

Important Income Tax Tasks Before March 31

One important factor to consider is the application for a reduced or zero TDS (Tax Deducted at Source) certificate using Form 13. Although this is not required before March 31, it is recommended to start early to ensure proper deductions in April.

• Apply for Form 13 to reduce or eliminate excess TDS
• Ensure correct tax deduction from upcoming financial year
• Avoid refund delays due to over-deduction

Another significant aspect of filing income tax returns is the filing of a revised income tax return through ITR-U, if applicable. This is to rectify errors such as income not included in the original income tax returns or incorrect tax calculations.

1. Identify missing or incorrect income details
2. Access the income tax portal
3. File updated return using ITR-U
4. Pay additional tax and applicable penalties

It is also essential for taxpayers to note that the due date for filing TDS returns for Q3 2025 has been extended until March 31.

Capital gains planning is also important. Taxpayers should assess their investments and determine if it is better to sell them for tax purposes.

• Set off capital losses against capital gains
• Utilize carried forward losses
• Eligible exemptions

Depreciation for businesses is based on the utilization of assets. Assets have to be purchased and utilized before March 31.

Key GST Tasks Before March 31

GST compliance requires reconciliation of returns with financial records. Businesses must ensure accuracy between GSTR-1, GSTR-3B, and accounting books.

1. Match GSTR-1 with sales records
2. Verify GSTR-3B with books of accounts
3. Reconcile GSTR-2B with ITC claims
4. Review credit and debit notes

Another crucial task is reviewing input tax credit (ITC). Businesses must ensure only eligible credits are claimed and ineligible ones are reversed.

• Verify supplier invoices
• Check eligibility under GST rules
• Reverse incorrect ITC claims

For exporters and SEZ businesses, filing a Letter of Undertaking (LUT) for FY 2026–27 is essential.

1. Access GST portal
2. Submit LUT application
3. Ensure approval before new financial year

Businesses should also evaluate tax positions and litigation risks. Reviewing classification, valuation, and exemptions ensures compliance and reduces disputes.

• Identify high-risk tax positions
• Maintain supporting documents
• Refer to legal rulings and circulars

Supplier compliance is equally important. ITC claims depend on whether vendors correctly file returns and pay taxes.

• Verify supplier GSTR-1 filings
• Ensure tax payment via GSTR-3B
• Match invoices with GSTR-2B

Conclusion

The March 31 deadline is an important milestone for taxpayers to assess income tax and GST liabilities. The process of applying for TDS certificates and reconciling GST returns is an important milestone. Each of these activities is important for taxpayers to become financially efficient and avoid any penalties. The process will enable taxpayers to start the new financial year with a clear mindset.