Are you looking for an investment now, this minute? Has the workplace sent over the tax declaration form to be filled up? Are you panicking right now because you did not make any investments till date? If you find yourself saying yes to even one question or most probably all three then you can be sure it's December and time to submit proof of investments for filing income tax returns. Come January first week you will find people scrambling for last minute investments in the run up to March each year. Â Why is it that people scramble to buy investments or try to save some money so that they can save up on tax at the last minute?
Income tax is nothing but tax that citizens of the country pay to their government for working and earning their livelihood. Paying tax is not a onetime ritual, it is done every year. You either follow the calendar year January to December in which case you find that you have to submit documents by November in a run up to final tax deduction happening in the month of December or you follow the business year which is from April to March each year. Proofs of income and investments have to be submitted at your workplace by the December end or the beginning of January. All this is quite necessary so that you can save up on tax and also get the form 16 that is provided by the companies for deducting tax at the source of your income. Knowing your tax deduction and making provision to save some of it is quite essential today and needs to be carefully thought out. Sine this is the time for submitting proof let's make a list of all things necessary so that you are able to save money.
Some things to keep in mind when you have to filing income tax if you are a salaried individual
1)Â Â Â Â Â Make a note of the year that is being followed at work as that will determine when you will need to submit proof. If the calendar year is followed then September is the month when submissions would be done at work. If it's the business year then December or first week January is the deadline to submit your investment proof to the workplace.
2)Â Â Â Â Â Always check with the finance department about the tax bracket you fall in depending on how much salary you draw. Based on that you would need to either save more or you already have enough savings to save on tax, making it easier to file income tax.
3)Â Â Â Â Â Make sure you have receipts of payment towards life insurance and other tax saving investments.
4)Â Â Â Â Â If you are living in the city in a rented accommodation then you should make sure to have a copy of the rent receipts and also a copy of your agreement if needed.
5)Â Â Â Â Â If you are falling short of the necessary tax saving investments then make sure you have done the same a month before the year end. Doing this will give you are chance to collect the receipts and submit them in advance.
You should make sure you have made note of the important things mentioned above, so that you are able to save, invest and also get the form 16 from your workplace that confirms you have either paid tax or you did not need to do so.
Income tax is nothing but tax that citizens of the country pay to their government for working and earning their livelihood. Paying tax is not a onetime ritual, it is done every year. You either follow the calendar year January to December in which case you find that you have to submit documents by November in a run up to final tax deduction happening in the month of December or you follow the business year which is from April to March each year. Proofs of income and investments have to be submitted at your workplace by the December end or the beginning of January. All this is quite necessary so that you can save up on tax and also get the form 16 that is provided by the companies for deducting tax at the source of your income. Knowing your tax deduction and making provision to save some of it is quite essential today and needs to be carefully thought out. Sine this is the time for submitting proof let's make a list of all things necessary so that you are able to save money.
Some things to keep in mind when you have to filing income tax if you are a salaried individual
1)Â Â Â Â Â Make a note of the year that is being followed at work as that will determine when you will need to submit proof. If the calendar year is followed then September is the month when submissions would be done at work. If it's the business year then December or first week January is the deadline to submit your investment proof to the workplace.
2)Â Â Â Â Â Always check with the finance department about the tax bracket you fall in depending on how much salary you draw. Based on that you would need to either save more or you already have enough savings to save on tax, making it easier to file income tax.
3)Â Â Â Â Â Make sure you have receipts of payment towards life insurance and other tax saving investments.
4)Â Â Â Â Â If you are living in the city in a rented accommodation then you should make sure to have a copy of the rent receipts and also a copy of your agreement if needed.
5)Â Â Â Â Â If you are falling short of the necessary tax saving investments then make sure you have done the same a month before the year end. Doing this will give you are chance to collect the receipts and submit them in advance.
You should make sure you have made note of the important things mentioned above, so that you are able to save, invest and also get the form 16 from your workplace that confirms you have either paid tax or you did not need to do so.