Gowtham

"Accounting & Finance | Team Lead @ Anantha Sankhya | Helping curious minds connect the dots behind numbers through simple, practical finance insights."

[Gowtham @gowtham77byAS]

@Adhamya77 Right.... You can claim ITC only when all the conditions are met...

[Gowtham @gowtham77byAS]

@Adhamya77 Yes it is.. That's why businesses keep checking GSTR-2B before claiming their ITC.

[Gowtham @gowtham77byAS]

@Adhamya77 One more..... Your supplier should upload the invoice and invoice should appear in your GSTR-2B.....

[Gowtham @gowtham77byAS]

@Adhamya77 You should be GST registered and have a valid GST invoice and actually receive the goods or services....

[Gowtham @gowtham77byAS]

@ArvindN75631560 @Adhamya77 Not blindly. Check where entry came from bcoz mistakes can happen in AIS. If AIS & Form 16 don't match, find out why before filing. It could be a delay, missing entry or an error. AIS is for reference. You have to review your income, deductions & other details before filing ITR.

[Gowtham @gowtham77byAS]

@Adhamya77 You could end up missing income or tax details that are already available with the department, which may further lead to corrections later, refund delays and notices.

[Gowtham @gowtham77byAS]

@Adhamya77 Form 26AS helps you check whether the tax already deducted from your income is actually showing against your PAN..

[Gowtham @gowtham77byAS]

@Adhamya77 Yes.. It gives you a clearer picture of the information reported against your PAN, so that you don't accidentally miss anything while filing.....

[Gowtham @gowtham77byAS]

@Adhamya77 That's exactly where many people get caught. Form 16 mostly covers salary income, but you may also have bank interest, FD interest, dividends or other transactions that don't show up there but do appear in AIS.

[Gowtham @gowtham77byAS]

@Adhamya77 Not at all... Technology can just show you what's happening but it can't make decisions for you. Business owners still need to take action and make the right calls but now they are based on current information instead of old reports........

[Gowtham @gowtham77byAS]

@Adhamya77 Good question!!! If sales starts slowing down, collections get delayed or cash starts getting tight it is much better to know today and act accordingly instead of finding out after the month is already over. Because business problems don't wait for month end……

[Gowtham @gowtham77byAS]

@Adhamya77 Yes. They can also check cash available, sales happening, customer payments due and upcoming expenses all in one place……

[Gowtham @gowtham77byAS]

@Adhamya77 Nope!!!! it is a simplified scheme…

[Gowtham @gowtham77byAS]

@Raghav200214 @Adhamya77 It's mainly for small businesses run by resident individuals, HUFs and partnership firms (not LLPs), provided their turnover stays within the limit allowed under the scheme.
If profits drop, you can show the actual profit.
If you leave the scheme,Have to wait for the next 5 years

[Gowtham @gowtham77byAS]

@Adhamya77 Businesses are not all the same...... Sometimes your actual profit may be lower and your future growth plans may make normal accounting a better option.

[Gowtham @gowtham77byAS]

@Adhamya77 Sure! If your business turnover is ₹50 lakh and the receipts are received through the bank, 6% of the turnover is assumed to be profit which comes to ₹3 lakh now tax is then calculated on that amount.

[Gowtham @gowtham77byAS]

@Adhamya77 ₹2 crore if cash receipts exceed 5% of total receipts.
₹3 crore if cash receipts are 5% or less of total receipts (the business is largely digital).