5 Rules To Remember While Filing Tax Returns

Most people dread the tax season. Paying tax is seen as a burden and the whole process of filing returns is associated with boredom and complexity. Some taxpayers make mistakes too. For example, while filing taxes, some do not consider their entire income or others fail to consider all the taxation rules. Some try to evade taxes. Filing incorrect returns deliberately or unintentionally can land you in hot soup. It is important to file the correct income tax returns and to pay tax applicable before the due date .

 There are so many forms! Which Income Tax Form Should I Fill To File my returns

An Income Tax Return(ITR) is a summary of income earned, losses made, investments made, taxes paid etc. It is not enough to just pay taxes. You have to file your income tax return with the government. This will help in recording that you have paid your tax as well as calculate the correct tax payable.

Six Common Queries for Filing Income Tax Returns

Capital losses are incurred when you sell a house property for a loss or sell shares at a loss.These losses can be set off against certain income heads. This will help to reduce taxable income, thus reducing tax liability.

Avoid These Tax Planning Mistakes

The IT returns website might not work at the last minute or you are busy at work and do not have time to file the returns. We will not have time to get the documentation such as bills, Form 16, Form 26AS etc. ready. One can encounter many such issues. It is, therefore, better to plan for taxes at the beginning of the financial year, take the necessary steps throughout the year and prepare the IT returns and file it well in advance.

Different Ways To Reduce Tax Liability

It is that time of the year when we have to file our taxes for the year. It is not a task that many of us enjoy and we want to quickly get it done with. But in our eagerness to get it done with, we must make sure that we do not file the returns inefficiently as this would mean increased tax outgo and mismanagement of our money. We must make the best use of the different ways to reduce our tax liability and at the same time ensure that our financial plan is on course to achieve our goals.

Tax saving options for self-employed/small business units and start ups.

Income tax act provides multiple benefits to manufacturing enterprises, for example, additional depreciation, specified business under section 35AD, etc. In the case of a manufacturing enterprise, if a new machinery is installed during the year, then in addition to the normal depreciation, such units are also eligible to claim additional depreciation up to 20% in the year when the machinery is put to use. Read more