Income Tax Calculation - How much time Payroll can save
The filing procedure for the return
of the income tax service in India
i.e. IRT has already been started with the government notification. People have
started filling up forms for the new Assessment Year which is 2018-19. In this
new for the individuals has to provide the details regarding their income
ranging between the break-up of their salary to quoting about the gross
receipts according to the GST returns. This year the preceding day to file the
IRT is 31st July, therefore, people must avoid filing return at the last
moment. As per reported the income tax report has been changed and made more
strict. If any individual tent to cross the deadline then a heavy penalty would
be a charge against him.
The gathering of the Income-tax was
well organized and it is gathered at a foremost part of the income of the
state. The tax never increased but on the other hand, it affected the economy.
The payroll of the employees is to be calculated from the gross monthly salary
wage earnings and from the other several payroll deductions to reach the net
pay. It may sound simple but it’s not. Calculating the numerous payroll
deductions involves the individual to study every detail with attention and
accuracy.
Have you ever thought to save some
amount while paying you tax? If yes, then how? Let us understand by the
following method that how can we save time and money together.
Avoid Penalty
According to the report by the income tax service in India that from
the last financial year i.e. 2017-2018 the late fee of Rs. 5,000 has been added
along with the amount. The penalty amount increases as the individual miss the
December 31st, 2018 deadline. If any individual files an ITR after 31st
December 2018 then he has to wage a late fee of Rs.10, 000. This penalty
depends on the people to people as per to their wages. People who are earning
less than 5 lakhs will be paying the penalty amount within Rs. 1000
Dipping Interest Burden
The late filing of the ITR would
feel like a burden if the tax-liability is unpaid. If the individual has the
tax-liability and has not yet filed their returns then the interest charges
might be added as 1% SI on per month basis till the number of month delay. This
law falls under the section 234A of the income tax service in India
Maximizing Interest Income
If in any case the individual pays
excess tax and it has to be refunded then the tax department has to pay
interest at the rate of 0.5% pm for the number of days delayed by them. The
refund of the amount takes a bit time to come back to the individual.
The period of delay is considered
from the foremost day of the assessment year to the last day the refund is
received by the individual. If in any case the filling of the return is delayed
then the time period for the interest will be considered from the day of
filling the return to the date when the refund is received.
Carry Forward of Losses
Until the individual fills the
return the loss amount can’t be forwarded on the day off before the due date.
There are two other benefits and i.e. the carry forward and the set off of
losses. The only way to carry forward the loss and set off the losses happens
with the house property.
So, this year every individual must
try their best to file the income tax return on time as delay can lead to
unnecessary hassles. You must carry all your important documents and avoid the
last minute rush which might lead you to any kind of technical failures and
therefore delay the process of filing the income tax return
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