In today’s time, everyone has to comply with the income tax rules and regulations, be it the mammoth corporate houses or merely a government employee. The rules, regulations, and compliances are equally fair for everyone. These are time-bound and require domain-specific expertise to tackle issues. Deadlines have especially become sacrosanct in the process of income tax filing. Delay of even a day can fetch heavy fines or legal actions, in some cases both.
The people pay income taxes as a part of their salary towards the development of the country. Salaries of the government employees, management of resources, doing new projects, etc.; all of these are managed by the money of taxpayers.
Taxation, being an extremely sophisticated and ever-changing topic, requires experts to take care of services like these. The rules and regulations keep changing, sometimes changes are observed twice or thrice in a single quarter. So the consultants employed should be of the highest order as they are the ones handling the money. These consultants need to be updated regularly with the reports and alterations, if any, in the system. These consultants guide their clients in the cases of planning and documentation process. A mistake made may result in the loss of a huge amount of money. This requires decision-making to be apt.
Brief info on Income Tax:
Income gathered throughout a year is liable to taxation. Different slabs are made for income levels. Through these slabs rates for income tax are determined. Our country follows a taxation system that is based on a residence basis. In our country, the financial year runs from 1st of June to 1st of June. People paying taxes can be classified into 2 categories which are residents and non-residents.
Income tax audit is a process rendered compulsory by the income tax act. Following entities are liable for paying income tax:
Businesses with an annual sale or turnover exceeding ?1crore.
Any working professional whose gross receipts exceed ?50lakh. These professionals may include lawyers, architects, doctors, etc.
All the above-mentioned people compulsorily need to pay income tax for the money that they make.
Last date for filing income tax audit report:
The last date for filing an income tax audit report is 30th September of every year. After this date, the department of income tax starts rolling out notices for the ones who had not filed any report.
Penalty for failure in duties:
Not filing income tax even after multiple notices or warnings can eventually result in the imposition of some penalties:
The defaulters would have to pay 0.5% of their total turnover.
Alternatively a fine of ?150000.
In both of the above, the one which would be the minimum will be imposed. However, these can be dodged by providing a valid reason for missing on the last date of filing returns.
The taxation system of any country is vital for its growth. The taxation system is also equally vague and confusing. Experts such as Chartered Accountants are usually hired for tax filling purposes as they know the ways and means of this industry.