It is Navratri and the air is ripe with spiritual chants and prayers for the Adi Shakti, the supreme goddess who is the centre for energy of the entire universe. It is a period that can be associated with penance, with purification of the soul and the realization of the true self. Many people do homas and chant stotras in order to remind themselves of the mighty goddess and the power she holds.
Relating all this to our daily lives, what significance do these things hold in our lives? The ‘Nav’ meaning nine and ‘Ratris’ meaning nights define and give you nine reasons and methods of letting go of some evils within you. They help you let go of lust, anger, greed, ego, guilt, fear, jealousy inertia, hate and attachment. So relating these to our finances and taxes we can also resolve to get rid of our ignorance related to taxes.
So here we give you these nine reminders that will help tax payers avoid the ignorant behaviors towards their taxes –
- Tax planning is year round – Often we forget that tax planning needs to be thought about at every step of life. Every expense that you make can go to reduce your taxes, every penny you save can provide you with an opportunity to make a tax saving investment. So be vigilante and aware of this.
- Advance Tax due dates – There are 4 due dates for Advance Tax that one needs to keep in mind so that you do not incur penalties for non-payment of Advance Tax.
- Tax declarations – Bills required for tax declarations need to be collected year round in order to submit them at year end. Hence make sure you develop a habit to keep all those medical bills, food bills, attire bills, rent receipts etc safe to be produced to HR at the end of the tax year.
- Holiday is actually tax saving – LTA is the most underutilized deduction of all since we do not care to produce our journey tickets to our company. Remember that this is a huge tax saving especially when you travel by air with family and spend 30 to 40K on air tickets.
- Be mindful of your tax bracket – As you climb up the corporate ladder you also climb up the tax rate brackets and your income is chargeable at higher rates of taxes. Hence make sure that you need to do a lot of tax planning in order to optimize your tax situations.
- Tax refunds – Many times you file for your tax refund but do not get them on time since we provide incorrect personal details and hence the refunds get stuck.
- Tax filing deadlines are important – Often people wait until the last minute to file their taxes and this results in chaos or incorrect filing of returns or in many cases failure to file the return by the due date. This might result in tax notices and penal interest as well as penalties for non-filing of tax returns.
- Revision of tax returns – many times we make some unintended mistakes while e-filing tax returns and hence we need to file revised returns. One should be aware of the fact that these revised returns can be filed only when the original returns have been filed and hence the original returns must be filed within due dates.
- TDS certificate or Form 16 is not a tax return – Form 16 that is issued to salaried individuals is not a tax return in itself and tax return needs to be filed separately by filing taxes in the form that is applicable to you by the due date 31st July every year.
Once we free ourselves from such ignorant behaviours we can make sure to have a hassle free tax life. Let the divine blessings of the goddess bestow us with the required light.