Ignorance is not Bliss when it comes to filing your taxes in India
Ignorance is not Bliss when it comes to filing your taxes in India. Basic know how, and knowledge in taxes certainly gives you the power, and confidence to Save-on-Taxes, and gives you the peace-of-mind that you well deserve.
Here are the Top Ten reasons Team EZTax.in found when it comes to “why people Don’t File their Taxes in India?”
TDS already deducted by the employer:
While your employer deducts 10% of the total income exceeding Rs.2,50,000/- you are still mandated to file your taxes to include income received from Other Sources and/or to get the refund if eligible.
I Lost my Form-16 :
If Lost, you may get it from your employer for the period to which the Form-16 belongs to. While it’s not fool-proof, you can consider Form 26AS to reconstruct the income received and file your taxes. Form-16 is one source of income, you must file to include other sources income too.
I am not working anymore:
For those who are completely retired, or paused their employment due to some hardship, health issues etc., need to consider the income other sources to file your return. Some times, for certain section of people whose employment is from Government, State, Local authorities, may get Pension, which can be an income source to use it while filing your taxes.
ITD may track me once I started Filing:
It’s a myth as ITD (Income Tax Department), in this day and age of post demonetization, RBI and other agencies actively track your financial activity even without your IT Filing. One estimate from EZTax.in team suggests, 76% of all financial transactions in the urban and semi urban are through non-cash by 2020 in India. Hence, there is no room to believe that ITD tracks you down only after your first tax return.
I handled all my business in Cash
One estimate indicate, that this is one of the major reason why people believe they are invincible to Tax authorities. While it’s partly true, the assets you acquire over the time, and spending habits you have may push you in to trouble if no tax records exist. Today, you can’t get expensive, luxury items in India without swiping your PAN card and sufficient document. In addition, new restrictions on amount of cash you can exchange with one party, per day, and per year.
Waiting until last minute, and Forget to eFile.
Today, 46% of the IT filings are processed during last wk before the IT Filing deadline (typically Jul 31st, ecept for AY 2018-19, it’s Sep 31st). There is a possibility people miss to file within the the time. Starting from AY2018-19, ITD imposing a penalty of Rs.5000/- on late filings before Dec 31st, post that it would be Rs.10,000/-
No one reminded me to File my Taxes
It’s true, we like to get reminders. In fact, ITD is conducting extensive publicity thru TV, Radio, Web, SMS channels during Jun, Jul months. But Filing Taxes is mandatory, and a duty for every law abiding Citizen / Legal Resident.
I lost more money than I received
Even if you loose money on certain investments, or lottery bettings, the income you received is taxable except few cases. Hence Tax filing is a must in most of the cases.
Not knowing how to prepare Taxes
It’s easy to understand that the financial literacy is very poor and understanding taxes is a far fetched expectation. Professional companies such as EZTax.in spends quite some time in educating the tax payer thru various channels. in worst case, one should consider taking professional help.
No access to Tax Professionals for me
Particularly in rural areas of the country, even in 2018, getting RIGHT professional is very difficult. Due to lack of re-certification norms, lack of interest in serving rural population is a major hurdle serve such population. Due to making Tax Filing Online in the past years, one can choose Online help to file your Tax Returns.
In addition to above, ITR (Income Tax Return) is an annual compliance document, and a proof of the income that can be used for many situations such as getting loans, income proof, getting foreign visa, use it while getting hired for a new job, and in some compliance matters. Check below Video to see reasons why you should file your Taxes ?
Top 7 Reasons – Why you should File your Income Tax Returns
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