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Get tax ready for the next financial year

Return preparation and filing should not be considered as an activity to be undertaken after the close of financial year, but it should be well planned in advance.

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The article talks about planning taxes in advance. It states that many taxpayers consider the return preparation and filing as an activity to be undertaken after the close of the financial year, but, this actually impacts their overall tax liability for the year.

The article lists down the benefits of advance tax planning. It enables taxpayers to estimate their tax liability for the year and pay advance taxes. If you fail to pay advance tax on investment income, you will ultimately have to pay a huge interest while return filing.

Sometimes, you may be denied timely access to all the information needed for filing return. In such a scenario, you will have to pay penalty for late filing.

The article further talks about early planning for investing in certain tax-saving instruments so as to save taxes. If you keep aside the right amount of money for investing in these tax-saving products, then you will not face cash crunch at the last moment, which is the case with those, who are used to late filing.

The article also emphasizes on the importance of furnishing an accurate investment declaration with the employer by salaried

individuals to avoid any short or excess deduction of taxes resulting in payment of interest and penalties.

Apart from this, the article has some pointers that will help taxpayers in arriving at the estimated income and tax liability.

You can read the original article written by our Managing Director, H&R Block India, Vaibhav Sankla below. The write up has appeared as an authored article in Money Control.

Source : Money Control