Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: form 3cd :: list of goods taxed at 4% :: TDS :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: empanelment
News Headlines »
 How to save income tax? Here are 6 investments with tax free income
 10 Top salary deductions that can save tax for you
 What are the tax saving options beyond Section 80C?
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case
 How to save income tax under section 80C

Five tax mistakes to avoid in 2014
December, 31st 2013

Every new year comes with many resolutions, but these resolutions keep fading with each passing day. This holds true for almost each one of us regardless of the serious consequences on our health and wealth. One very important resolution is compliance with income tax to avoid tax notices and penalties. Tax authorities, nowadays, can track all financial transactions with their integrated database. So, keeping in mind the following tips can help you save yourself from the prying eyes of the income tax department (ITD).

Don’t forget to file IT returns

It is mandatory for every individual, those who earn above R2 lakh, to either efile or manually file their income tax returns. For those with income above R5 lakh, it is mandatory to efile the return. The true objective of ITD behind tax notices is to keep an eye on the non-filers of tax returns and tax evaders. The department scrutinises cases through Computer-Assisted Scrutiny System (CASS). This system matches information received on the basis of your PAN with the I-T returns filed by you. If any mismatch is found in the income that you have declared and your investment and expenditure, ITD will promptly issue a notice to you. The chances of getting a notice rise tremendously if you don’t furnish your ITR at all and there are transactions reported against your PAN.

Never submit wrong declaration in Form 15G/15H to avoid TDS

Generally, people split their deposits in different banks or branches to avoid TDS, but this won’t help much. Firstly, check whether you are eligible to submit 15 G/H or not. As per laws if the income from interest on bank deposits exceeds R10,000 a year, the bank deducts TDS. Those who have tried to avoid TDS by submitting Form 15G or 15H in spite of having taxable income are being caught easily through their PAN. A wrong declaration can cost you R10,000.

Don’t hide income neither exempt nor of small value

It has been noticed that majority of tax payers are not declaring saving bank interest as well as exempt income. The ITD can slap you with tax and

penalty up to 300% of tax evaded anytime in next 8 years. The other common mistake is not declaring FD interest where TDS has already been deducted by bank. In this case if the total income is above R5 lakh, the tax slab would be 20%. Hence, additional 10% tax needs to be deposited on FD interest income. Similarly, any commission, rental income on property, amount received from a non relative above R50,000 during the fiscal, gain/loss on sale of capital assets i.e. property, shares, gold, paintings, etc, is to be disclosed in the ITR.
Match returns data with Form 26AS
Form 26AS reflects all your income and tax credits. Always match your return data with Form 26AS before filing the return. Numerous tax demand notices are being sent to taxpayers, because the TDS being claimed in the income tax return is not reflected in form 26 AS. This could be due to submitting wrong PAN to employer/deductor or a case of typo error by employer or delay in depositing the TDS amount by the employer.
Invest in tax saving options after knowing tax laws
Don’t invest in tax saving options without knowing current tax laws. Every year there are changes in tax laws and terms and conditions for eligibility. PAN of the landlord is now mandatory for rent payment of more than R1 lakh per annum. Not giving your PAN to the employer leads to higher TDS of 20% of salary, even if you fall in lower tax bracket. Reverse mortgage has been introduced for the benefit of senior citizens. However, it is not being used as an instrument of tax free retirement planning.

Sudhir Kaushik
The writer is CFO,


Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions