18/06/2022
📌Top 10 myths busted about business and tax
❌ I am not making profits so I don’t need to file return.
Fact: Income tax act requires every person (Individual, firm, HUF, LLP, Company) to file income tax returns if the total income exceeds the maximum amount which is not chargeable to income tax. However, the law does not prohibit the assessee from income tax return filing if the total income doesn’t exceed the maximum exemption limit.
❌ My refund is delayed by my lawyer/CA
Fact: There can be other reasons for your refund getting delayed : mismatch in the tax paid details, error in bank account details, technical problems at the department, growing number of tax payers, change in mailing address.
❌ I cannot file ITR apart from my usual place of residence
Fact: You can file your return from anywhere in India, even if you have shifted to a new place. Your complete record is maintained with income tax department as per your PAN data.
❌ E-filing is not safe
Fact: E-filing is safer than paper filing as your return is going directly to the secured server of Income Tax department.
❌ Return filing is not mandatory if I have paid all my taxes and interests and there is no refund due to me
Fact: Amounts paid as advance tax and withheld in the form of TDS or collected in the form of TCS will take care of your tax due only on completion of self-assessment of your income.
❌ So far I have never paid any tax. If I file a return this year, the IT department will ask me about my earlier years’ income
Fact: It is never too late to start honoring your constitutional obligations for payment of tax. The department may ask you to file return of income for earlier years if it finds that you had taxable income in those years.
For other myths send us a DM and we will clarify those for you.