Today is April 1st. It’s the beginning of the new Financial Year 2017-2018. A very important day for you and crores of citizens of this Nation. The Finance Minister Arun Jaitley, presented the Union Budget 2017 on February 1st 2017. This was a highly anticipated Budget and the Finance Minister did not disappoint. The highlight of this Budget was the infrastructure status given to affordable housing. This is a big boost for affordable housing and you can now, dare to dream of your first home.
The beginning of the Financial Year is the best time for you to do Tax Planning. “A Rupee Saved Is A Rupee Earned.” Tax evasion is a crime. Tax avoidance is not. It is your duty to make use of tax deductions and tax exemptions to save your hard earned money.
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The Finance Minister wants to put more money in your and other citizen’s hands, so that you can shop and spend. The Finance Minister cut income tax rates from 10% to 5%, for you and other citizens, earning between INR 2.5 Lakhs to INR 5 Lakhs.
This move by the Finance Minister can help you save tax up to INR 12,500 a year. The cut in income tax rates also helps you, if you fall in the higher tax brackets.
Are you always late while filing income tax returns? You better watch out. If you delay filing income tax returns for this Financial Year 2017-2018, you would have to pay a penalty of INR 5,000, if filed by 31st December 2018. The penalty would be higher, if ITR filed beyond this date.
You are a small tax payer earning income up to INR 5 Lakhs? The penalty is restricted to just INR 1,000.
From July 1st it is compulsory for you to disclose Aadhaar number while filing income tax returns. You will also have to link Aadhaar to PAN by December 31st 2017.
Tax evaders in our country have two, three or multiple PAN cards, which they use to evade tax. You and other citizens have to mandatorily link Aadhaar to PAN, otherwise your PAN is invalid. Tax evaders have no escape route and have to pay taxes.
To link your PAN Card and Aadhaar, you and other tax payers will have to first register on the income tax e-filing portal.
The income tax department has introduced a single page form for filing income tax returns (ITR). You can file income tax returns using this form, if you earn an income up to INR 5 Lakhs, excluding any business income.
The income tax department will not scrutinize your returns, if you are filing ITR for the first time in this category.
After demonetization, tax in India is changing. Evasion of taxes is getting really difficult. All escape routes are slowly closing. You have no option but to pay your taxes. It would be wise to read these points and get ready for the Financial Year ahead. Be Wise, Get Rich.
Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.