by Mr. VINEET AGARWAL, KPMG
With the dawn of every year, most of us pass resolutions.
Compliant in Tax..!
One of them can be of becoming compliant in tax matters; these may include filing timely income-tax returns, adhering to dates of paying advance tax instalments or / simply submitting tax proofs to the employer. And most of it can be taken care of it you can follow a tax calendar for the year.
January and February..!
 |
| Vineet Agarwal, KPMG |
Over January & February, 2013 most employers are busy finalising tax liability of their employees for financial year 2012-13.
They compute the taxable salary and allow deduction for tax breaks available to employees. As an employee, your endeavour should be to submit the documents in a timely manner. They include medical receipts, leave travel receipts, rent receipt, along with proof of various tax-saving deductions available to you.
Some popular components of tax deductions may include housing loan repayment, life insurance / medical insurance, repayment of education loan, school / college tuition fee for children, contributions to PPF (Public Provided Fund) and new pension scheme (NPS).
March..!
March marks the end of the FY13.
In case you have additional sources of income like interest on savings, rentals, commission, professional receipts or / capital gains on which no tax has been deducted or the tax has been deducted at rates lower than the tax slab, then you must compute the balance tax liability & deposit the last installment of advance tax by March 15, 2013.
April..!
Tax planning would essentially start from April, 2013 which marks the beginning of FY14 (2013-14).
Most employers allow employees to structure their salaries & declare tax savings and investments they intend to make over the year.
Employers use this declaration as a basis to deduct taxes over the financial year.
May and June..!
Consider May and June, 2013 as the period to collate all TDS (Tax Deduction at Source) certificates and documents relating to FY13 (2012-13). You must collect TDS certificates from all sources which can be in Form 16 and Form 16A.
Employers are statutorily obliged to issue TDS certificates in Form 16 for 2012-13 by May 31, 2013.
July..!
The due date to file income-tax returns falls in July, 2013.
It is very important that you file your tax returns for 2012-13 by the due date, July 31, 2013. A return filed after the due date has certain disadvantages and lacks the option for future revision.
Also, the taxpayer is not allowed to carry forward certain losses to future years.
September, December..!
With all compliances achieved for FY13 (2012-13), it is now time to be compliant for FY14 (2013-14) and in case you have additional sources of income that require payment of additional tax, September 15, 2013 and December 15, 2013 are the dates for payment of first and second installments of advance tax.
March 15 of the following year (as stated above) is the date of payment of the final installment.
If you are a salaried employee, you should ensure that your taxes are regularly deducted & deposited by the employer. Achieving these basic and important compliances will make you compliant with the tax laws and can help avoid any unnecessary hassles later.
About the author.
Mr. VINEET AGARWAL is a Director at KPMG. The views expressed are personal.
No comments:
Post a Comment