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LET'S BUST SOME MYTHS ABOUT INCOME TAX



MYTH 1

I do not need to file a return because I am not making any money.

FACT: If the total income exceeds the maximum amount that is not subject to income tax, the Income Tax Act compels everyone (individuals, businesses, HUFs, LLPs, and companies) to file income tax returns. If the assessee's total income does not exceed the maximum exemption level, however, the legislation does not prevent them from filing an income tax return.

Every business must submit a report detailing its profits or losses for each fiscal year. Most startups and smaller businesses think it's not necessary to file returns because the first year doesn't produce any income. But if the loss income tax returns have been filed by the deadline, losses accumulated in the initial years can actually be used to lessen tax burden in the following prosperous years.


MYTH 2

Last date of filing return for year is 31st March

FACT: The following is the deadline for filing a return of income generated during the fiscal year 2021–2022:


July 31st, 2022: for those who have total income exceeding the maximum exemption limit and do not need to get their accounts audited

Sep 30th, 2022: for those who need to get their accounts audited under Income Tax Act, 1961


Those who fail to file the return before the above mentioned dates can file a belated return by March 31st, 2023.


MYTH 3

I have never paid taxes before. I'll be questioned by the IT department about my prior years' income if I submit a return this year.

FACT: It's never too late to start upholding your legal responsibilities to pay taxes. If the department determines that you had taxable income in prior years, it may request that you file returns of income for previous years.


MYTH 4

The IT department will not have access to the information on my bank accounts that I did not provide in my tax return.

FACT: The Income Tax Department can discover all of your bank accounts, if any, even if you only listed one account number in your ITR.


MYTH 5

My refund is delayed by my CA/LAWYER

FACT: File your tax return early to ensure that it is processed quickly and that you receive your refund on time. The department of income taxes receives your tax return. Your tax advisor uses the income tax portal to submit your tax return on your behalf. Your return is filed by a professional with due diligence and utmost care. Other factors that could contribute to the delay of your return include inconsistencies in the tax-paid information, mistakes in bank account information, departmental technical issues, an increase in the number of tax filers, and changes in postal addresses.


MYTH 6

If I don't file return nothing will happen and I am safe

FACT: If you don't submit your return, you are not secure. You should always file your return in order to detail your genuine income sources. The following situations may need you to present your return statements:

ITR paperwork are required if you want a VISA from an embassy, a bank loan, a limit, or for a number of other locations.

Tax evasion is also punishable by interest, fines, and legal action.

When the I-T return is not filed by the statutory due date or within the time frame allowed by the tax authorities in the notice given requiring submission of such returns, prosecution procedures may be initiated.



YKG Corp.

CA Mukul Gupta

+91-9910220566

info@ykgcorp.com



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