New Year is nearing and it’s time you make a list of your New Year resolutions. It is also a time to appraise how the past year went by and what were the resolutions that you missed. This year H&R Block gives you a new resolution to keep and this one’s going to be the most critical on your list. Resolve to manage your taxes better. Make sure that you do not receive any notices from the ITD for non-filing of returns.
Income tax department is more vigilant than ever before and is encouraging tax payers to file their taxes. Hence it is imperative to make sure that you not only file your taxes in time but also make sure that there are no errors in doing so. In order to do this one must ensure that his tax returns are error free and do not contain any mismatch in the income details. Following pointers may help you in this:
No mismatch in the declared income and investment details
When you file your returns with the ITD make sure that you have submitted all the correct details of your income from all sources and investments made. The different sources can be salary, house property, interest, rent etc. The most common mistake is not to disclose income that is exempt from tax. For example, even if interest from savings bank account is exempt from tax up to Rs. 10,000 you must declare it in the return of income. Your high value transactions done through banks are all traced since these are linked to PAN and hence you need to ensure that whatever you declare is 100% correct, since if this is found out by the taxman later, then you are in for some trouble.
The ITD can also issue notices for any erroneous tax filing for past years and hence make sure that you preserve all the records for at least past 8 years. In case there is a mismatch then tax department can impose a penalty equal to 100% to 300% of the amount of taxes evaded.
Not filing your tax returns
Filing taxes is still a matter of ignorance amongst tax payers of the country. Especially when it comes to salaried individuals many are under the impression that if tax is deducted from their salary then there is no need for them to file their taxes. However this is not so and you still need to file your tax returns. Any person below the age of 60 years who earns total income above basic exemption limit of Rs.2,50,000, needs to file taxes and if income crosses the threshold limit of Rs.5,00,000 then needs to compulsorily file it electronically. The basic exemption limit is Rs.3,00,000 for senior citizens with age between 60 and 80 years and Rs. 5,00,000 for super senior citizens above the age of 80 years.
Mismatch in your Form 16 and form 26AS
Many times it happens that the TDS deducted as per Form 16 from your salary is not deposited in the government account. This may happen if your employer defaults in depositing the tax amount in the government account. In such case the ITD may send notice to you for non-payment of taxes. Make sure that you check whether the TDS mentioned in your Form 16 matches with Form 26AS.
H&R Block is here to help
If you still receive a notice from the ITD then don’t worry since H&R Block will help you to liaise with the tax department to resolve all your issues. H&R Block calls this Tax Advantage, a service extended to all those who file their taxes with them.
Here’s wishing everyone a very happy new year and year sans any tax worries!