papertax

Everytime we take to efiling of income tax return, a blog or two related to IT return filing pop out out of nowhere to supply us with their version of some new notification released by IT department of India. Such views only add to the confusion of an already complex income tax system that many of us find hard to comprehend. These confusions spread faster than any logic or fact, only to take shape of a myth that sounds good enough to reject.

But we can’t continue to live with myths for matters that link our financial freedom and stability to a government department that is famous for busting people that commit financial frauds, also known as the IT department. So here is a list of 3 myths related to IT return filing that you must get down with right now to avoid any future troubles.

1. Filing Returns Means Becoming a Blip on IT Department’s Radar

The process of IT return filing would surely bring you under scrutiny of IT department, but in a good way. Filing your returns not only enables you for loads of financial benefits, but also gets you a friend in the department. You can claim for refunds for any over deduction, get loans from banks for various reasons, carry forward your losses in the current financial year to other years, and such processes would be backed by the verification documents that you received from the department's side during the time of filing.

2. No Need to File a Return if TDS is already Deducted by Employer

TDS (Tax Deducted at Source) is the percentage that your employer cuts at the time of crediting your monthly salary. That’s is mandatory procedure that needs to be followed for any employee who earns beyond the exemption limit. The myth is born out of the belief that as the tax is already deducted for the purpose of submitting it to government, no further reasons stays to file an IT return. Efiling of our income tax return means that we inform the IT department of our each and every source of personal income. That includes residential or commercial properties, FDs, saving accounts, and any amount earned via offering a product or service from our side. Once we file the return, the decision to whether tax that income or not subject to criteria set by the government.

3. No Need to Pay Tax on Interests Earned from Banks and FDS

That a myth that has landed many into trouble, and that’s why it needs to be debunked right away. Interest earned from savings accounts, recurring deposits, and fixed deposits are taxable. However, there is also a lower limit till which you are exempted from paying any tax on the interest earned.

For more info, Visit: Papertax