Financial Year 2009-10 has ended. As we move into F.Y. 2010-11, there are 3 things we need to do when it comes to taxes:, pay off whatever income tax we still owe the exchequer, file our tax returns and plan our taxes for the new financial year. Let us look at each of these in brief:
Pay off outstanding tax:
One of the benefits of preparing an income tax return is that while doing so, you need to calculate you final tax liability. Preparing tax returns online can give you an accurate figure that tells you if you still owe any income tax. If you do, pay it off immediately, before you file your return. Like filing returns online, you can pay your taxes online too.
File your income tax return:
Beginning 1st April, you have 122 days to file your tax return, with the last date (before interest is charged) being 31st July. Ask your employer for your Form 16, if they do not voluntarily give it by the end of April. Form 16 gives you most of the information you will need to file your tax return. Once you have all the data ready, do not delay. Prepare and file your return as soon as possible. If you choose to e-file, all you need is to organise your data for ready reference, and a few minutes to type it into a website like www.taxsmile.com. You will get the amount of tax payable by you or refundable to you, displayed onscreen. You can then generate you return at one click and file it online itself.
The last year may be remembered as the "Year of Worldwide Recession" for many years to come. India was affected in a moderate way. The good news though, is that we are steadily coming out of it. So as you earn your money, be conscious of where it is going; this will help you avoid any mistakes you might have made during the rough phase last year. Save money, but invest it judiciously, especially in industries that are less likely to see a drop in demand. Make your investment planning transparent to your employer early so that they begin deducting tax from your salary sooner in the financial year. This will spread your tax liability evenly through the year. That, in turn, will leave you with more cash towards the end of the year, which you can spend, donate or invest as per the need of the hour.
Hello all,
ReplyDeleteWhen calculating the income tax liability the first and foremost aspect which comes across one’s mind is the tax slabs. Here is a look into the slabs for the current financial year to help you prepare your investments and income, and to be able to tax returns accurately in the following assessment year. Thanks a lot...