Cautiously maintain books of accounts to avoid legal consequences: Loya to taxpayers
Chartered Accountant Rajesh Loya speaking at the session organised jointly by VIA and ICAI here on Thursday. CA Naresh Jakhotia, Suresh Rathi, CA Saket Bagdia, CA Shailendra Jain and CA Sachin Jajodia are also seen.
Business Bureau :
Advising the taxpayers to cautiously maintain their books of accounts, renowned Chartered Accountant Rajesh Loya said that gone are the days when people used to ignore it. He called tax compliance an integral part of businesses and said, one should regularly do reconciliation of the accounts to lead hassle-free life. Loya was speaking at the session on ‘Chhoti Chhoti Baaten’ organised jointly by the Taxation and Corporate Law Forum of Vidarbha Industries Association (VIA) and Nagpur Branch of Institute of Chartered Accountants of India (ICAI) here at Civil Lines on Thursday. Loya and CA Shailendra Jain were the two keynote speakers. Loya said that the information technology has transformed the country’s Income-Tax Department.
“With the new system in place, the department is capable of collecting details of all the financial transactions of the tax payers. Besides, there are provisions of heavy penalties for those who give manipulated information to the department,” he said suggesting the taxpayers to ensure timely filing of TDS return, Income-Tax return and other complainces at the right time. Loya also highlighted the penal consequences in case of non compliances of various provisions of Income Tax. He further cautioned the participants about various other laws like money laundering that could have serious repercussions on the tax payers. He advised the taxpayers to regularly check the e-notice served by the Income-Tax Department.
“There are provisions of fine on the taxpayers for not responding to the notices issued by the department.” In addition, he elaborated the concept of Annual Information Statement (AIS) that was recently introduced by the Government and the future concept of pre-filled Income-Tax returns forms. He insisted on the regular reconciliation of not only bank but also with GST, debtors, creditors, AIS and 26AS. He advised to make the payment on bill to bill basis and regularly settles the account with the buyer / sellers. He then highlighted the importance of recognising the obsolete and slow moving items for stock valuation which is not only relevant for finalsiation of balance sheet but also relevant during survey and search proceeding. In his keynote address, CA Shailendra Jain advised the taxpayers to keep the email ID and cell number updated at the GST portal as all the notices and communication are now done in e-mode. He advised the participants to keep checking the mail box including the spam folder at regular interval on daily basis. He advised to login at the GST portal for checking the communication form the department. He further advised that even though the filing of GSTR 9 and GSTR 9C is not mandatory, still it should be prepared for the purpose of reconciliation so as to avoid future complications.
“The matching of GSTR 2B as well as GSTR 2A should be done strictly so as to have information about the seller who has not filed GST returns. The role of Artificial intelligence is increasing day by day and so he cautioned the industrialist to be fair and transparent in the business dealing. He also highlighted the amendment that will be effective from January 1, 2022 which includes the admissibility of ITC only if the same is reflected in GSTR – 2B. VIA President, Suresh Rathi in his welcome address spoke on the relevance of the topic for industries. CA Saket Bagdia, Chairman of Nagpur Branch of ICAI, in his opening remarks highlighted the initiative of Financial & Tax literacy drive of ICAI which covers housewives, students, retired person, etc. CA Naresh Jakhotia, Treasurer - VIA briefed about the concept of the programme. CA Sachin Jajodia, Convener - VIA Taxation & Corporate Law Forum proposed the formal vote of thanks.