Finally, it’s tax season! While much useful information is accessible on the Internet, there are rumors that don’t really support you. We have compiled a list of some of the top misconceptions about income tax returns for few companies and self-employed individuals.
Myth 1: I am not making profits so I don’t need to file return
Fact: Any person (person, business, HUF, LLP, Business) requires the filing of income tax returns, so that the gross income reaches the maximum sum not taxable. Nevertheless, if the gross income is not more than the statutory deduction cap, the law does not preclude the assessee from filing the income tax return.
Each business must return its revenue or loss in every financial year. Startups and smaller businesses usually assume that there are no earnings from the first year, so it is not important to file returns. However, losses incurred in early years may be used to reduce the tax burden in subsequent profitable years if income IT Return Filing within the due date.
Myth 2: My refund is delayed by my lawyer /CA
Fact: If you file your return early, you can also obtain early refunds on your tax returns. Your tax return goes to the department of income tax. Your tax return is filed on your behalf by the tax professional through the income tax portal. The professionals file your return with the utmost care and diligence. There may be other explanations why refunds are delayed: problems with information on the tax charged, account data discrepancies, technological departmental issues, increased taxpayers’ numbers, e-mail address changes.
Myth 3: I cannot file ITR apart from my usual place of residence
Fact: Even if you’ve moved to a new place, you can file your return anywhere in India. The income tax department keeps your complete record as per your PAN info.
Myth 4: E-filing is not safe
Fact: e-filing is easier than paper filing as the return goes to the secure server of the department of income tax. But you have to test that the platform you use to file your income tax return is trustworthy. And if you file your income tax return electronically and collect a stamp, the government handles your return online.
In reality, e-filing offers some advantages. You don’t have to stand in long lines when you e-file your return. E-filing your tax return would also be more reliable than filing a paper tax return. Actually E-filing is very safe because every individual has their own credentials regarding the accounts
Myth 5: Returns are not necessary until I have paid all my taxes and interest and no refund is available to me
Fact: Sums paid in advance and refused as TDS or collected as TCS shall only cover your tax after your income has been self-assessed. Fact:. This self-assessment is told by filing a return to the department. And then does the government obtain accrued tax rights as its own income. Reporting is important for this mechanism and has therefore been made mandatory. The failure would result in a penalty levy. All these myths are from the people who are very active regarding income tax and also IT return filing.
Myth 6: I’ve never paid any tax so far. If I return this year, IT will ask me about my income from earlier years
Fact: It is never too late to begin to comply with the statutory tax liabilities. If the department determines that you have taxable income during those years, they will ask you to file a return for earlier years. You can opt ITR Filing Online.