Year-End Closing Checklist for Indian Startups (31 March Close)

Before 31 March

The weeks before year end are for tax and cut-off decisions. Pay the final advance tax instalment by 15 March so cumulative payments reach 100% of estimated tax and interest is avoided. Review whether outstanding dues to micro and small enterprise suppliers exceed 45 days, because the MSMED Act requires payment within that period and late payment affects the tax deduction for the expense. Renew the GST LUT for the next year if you export without paying IGST.

• Pay final advance tax by 15 March
• Clear dues to MSME suppliers older than 45 days
• File LUT for the coming year (exporters)
• Decide on bonus and incentive provisions
• Collect investment proofs from employees for TDS

Closing the books

Book closing is about completeness and cut-off. Every invoice dated up to 31 March must be in the year's books, and every expense incurred but not invoiced should be accrued. Reconcile each bank account to the statement, clear suspense and unreconciled entries, and compare sales and purchase registers with GSTR-1, GSTR-3B and the Invoice Management System. Match TDS deducted by customers against Form 26AS or AIS so that credits are not lost.

• Bank reconciliation for every account
• GST reconciliation: books vs GSTR-1, GSTR-3B, GSTR-2B
• TDS receivable reconciled with 26AS/AIS
• Accrued expenses and prepaid expenses
• Fixed asset register and physical verification
• Balance confirmations from major customers and vendors
• Inventory count, if you hold stock

April to June: TDS and filings

Deposit March TDS by 30 April and file the Q4 TDS returns by 31 May. Issue annual salary TDS certificates by 15 June; for financial year 2025-26 these are still Form 16 under the old numbering, while the Income-tax Rules 2026 introduce new form numbers from tax year 2026-27. File DPT-3 by 30 June to report outstanding loans and money not treated as deposits, and the half-yearly MSME-1 return by 30 April if you owe MSME suppliers beyond 45 days.

Audit, AGM and ROC filings

Every company needs a statutory audit regardless of size. Give the auditor trial balances, schedules, reconciliations and confirmations early. The board approves the audited financial statements and board's report, then the AGM must be held within six months of year end. File AOC-4 within 30 days of the AGM and MGT-7 or MGT-7A within 60 days.

GST year-end points

Input tax credit for invoices of a year can be claimed only up to 30 November of the following year or the date of filing the annual return, whichever is earlier, so finish ITC reconciliation well before then. Credit notes for the year must also be declared by 30 November. Start a fresh invoice series on 1 April. Since July 2025, returns cannot be filed more than three years after their due date, so do not leave gaps.

Common mistakes

Startups commonly treat investor money as income, forget to accrue December to March expenses, leave director loans unreconciled, and miss ESOP and share-based payment entries. Another frequent issue is ignoring small differences between GST returns and books, which later become notices.

Step by step

1. 1Pay advance tax

   Clear the final instalment by 15 March.

2. 2Cut-off review

   Record all invoices and accruals up to 31 March.

3. 3Reconcile

   Complete bank, GST, TDS and intercompany reconciliations.

4. 4Verify assets

   Update the fixed asset register and count inventory.

5. 5File Q4 TDS

   Deposit March TDS by 30 April; file returns by 31 May.

6. 6Statutory audit

   Share schedules and close audit queries.

7. 7Board and AGM

   Approve accounts and hold the AGM by 30 September.

8. 8File returns

   File AOC-4, MGT-7/7A and the income tax return.