Tax payment often gets on your nerves. The number of investments that you need to make to curtail heavy taxes is something, which is supposed to be done guardedly. Especially, the paperwork that one needs to do in order to file returns is quite a taxing job. Unfortunately, one can’t escape filing returns. If you are earning, you have to submit income tax returns. Before you go about managing your tax returns, it’s important to elucidate the highlights of income tax returns.
Bringing forth the details of the yearly income that you have earned including the losses is what we term as Income Tax Returns. Whether you run your own business or you are a salaried professional, you can mention the losses incurred. Losses could be in the form of stock market declines also.
Many people may not be aware that anyone making more than Rs.50, 000 a year also needs to file income tax returns. Yes, it’s true. Even if your tax has been deducted from your salary, it’s necessary to file returns. According to the law, there has to be a one-by-six scheme for earners below Rs.50, 000.
If you are an owner of a motor vehicle, property, cellular phone or you have traveled abroad, carry a credit card or you are a member of a club, you need to file returns.
Make sure you have your receipts and documents ready before the D-day. Salaried employees need to submit returns by 31st July. So, you have enough time to prepare yourself. If anyone happens to miss the last date, there is a penalty. You would have to pay Rs.5000 and interest of 1% per month.
It may sound like a pain in the neck that one has to file returns even when you haven’t earned anything in a particular year. Agreed, it should not be that ways but one has to go through the process anyways. If you intend to apply for a loan, you are expected to present income tax returns for the last couple of years. So, in any case, you need to keep track of your income.
Paying taxes is a loathsome burden that we all want to get rid of and top of that we have to file returns, that sounds irksome. But there is nothing to worry about as there are financial experts and consultants out there who would help you out. Take their guidance as far as tax saving is concerned. They can easily handle paperwork on your behalf and suggest ways to mitigate tax burden also. It will be helpful if you keep record of all the receipts, bank statements and investment proofs to remain hassle-free.
To get this quick and easy, you also have the option to file returns online. It’s an inexpensive solution and saves you a lot of time. Online taxation is a service offered by the tax department and there are also some really good private websites available to ease things out for you.
Thereby, breathe easy as filing returns and managing your taxes are not really cushy but as long as you prepare yourself in advance, things are not that difficult.