Introduction
Running a successful business in India involves more than just profitability—it also means adhering to an ever-evolving legal and financial framework. Avoiding penalties compliance checklist is not just a best practice, it’s a necessity. From GST filings to income tax deadlines, labor law compliance to ROC filings—non-compliance can result in hefty fines, legal complications, and loss of reputation.
In this blog, we offer a complete compliance checklist to help startups, MSMEs, and established enterprises avoid penalties and maintain smooth operations.
Why Avoiding penalties – compliance checklist Matters
In India, statutory compliance involves adhering to regulations laid down by various governmental bodies including:
Income Tax Department
Ministry of Corporate Affairs (MCA)
Goods and Services Tax (GST) Council
Employees’ Provident Fund Organisation (EPFO)
State and Central Labor Law Authorities
Failing to meet deadlines or submitting incorrect documents can attract fines, interest, and even prosecution. That’s why following an Avoiding penalties – compliance checklist ensures your business remains protected.
Avoiding penalties – compliance checklist
1. Income Tax Compliance
File income tax returns (ITR) annually before July 31 (for individuals and non-audit cases).
Advance tax payments must be made on time.
TDS (Tax Deducted at Source) must be deducted, deposited, and reported monthly.
File TDS returns quarterly (Form 24Q/26Q).
Penalty Risk: Non-compliance may result in penalties under Sections 234F, 271H, and interest under 234A/B/C.
2. GST Compliance
File monthly/quarterly GSTR-1, GSTR-3B, and annual returns (GSTR-9/9C).
Ensure correct and timely payment of GST liabilities.
Reconcile input tax credit with GSTR-2B.
Maintain GST invoices and e-invoice compliance, if applicable.
Penalty Risk: Penalties under Sections 122 and 125 of CGST Act for delayed filings and incorrect data.
3. ROC (Registrar of Companies) Compliance
For companies and LLPs:
File annual returns (Form AOC-4 and MGT-7) with the MCA.
Conduct regular board meetings and maintain minutes.
Update directors’ KYC via DIR-3 KYC annually.
File event-based forms like PAS-3, SH-7, or DIR-12, as applicable.
Penalty Risk: Fines up to ₹1 lakh or more for non-filing or late filing under the Companies Act, 2013.
4. Labor Law & Payroll Compliance
Register under Shops and Establishment Act.
Pay timely PF and ESIC contributions.
Maintain statutory registers and employee records.
Issue salary slips and Form 16 to employees.
Penalty Risk: Labor authorities can impose penalties under EPF Act, Payment of Wages Act, and other relevant laws.
5. Professional Tax & Other Local Compliances
Register and pay professional tax, if applicable in your state.
File monthly or quarterly returns.
Comply with environmental, trade, or food safety regulations if relevant to your business.
Penalty Risk: Local bodies may issue notices and levy interest or penalties for delayed payments
6. Audit & Financial Reporting
Businesses with turnover above ₹1 crore (or ₹50 lakh for professionals) must undergo tax audit under Section 44AB.
File audit reports (Form 3CD) before 30th September.
Maintain proper books of accounts, ledgers, and vouchers.
Penalty Risk: Disallowance of expenses and penal action under Section 271B.
💡 Pro Tips to Stay Compliant
Use Reminders: Maintain a compliance calendar with all deadlines.
Hire a CA Firm: Professionals like CA Nexus Nashik ensure nothing is missed.
Go Digital: Use accounting and compliance software for automatic filings and alerts.
Conduct Internal Audits: Spot discrepancies early before the authorities do.
🔍 How CA Nexus Nashik Can Help
At CA Nexus Nashik, we understand that running a business leaves little time for compliance monitoring. That’s where we step in:
Timely filings for GST, TDS, ROC, and ITRs
Complete payroll and labor law compliance
Business health check audits
Dedicated compliance calendar setup
Let our experts help you avoid penalties and build a compliant, future-ready business.
📞 Let’s Get Started
Avoiding penalties isn’t just smart—it’s essential. Let CA Nexus Nashik be your compliance partner.
📧 Email: canexusnashik@gmail.com
📞 Phone: +91 9860400651
🌐 Website: zensta.in/canexus
