The filing of returns for my income tax is done for this financial year and we received a message acknowledging that from the income tax department.
I have never really understood finance terms. Sometimes I search on the internet to really understand if debit means taking money out or putting money into one's account. Yeah, that is how bad I am. I had one paper on commerce/financials in my under graduation. I had sat through the classes without really understanding the concepts. They just flew off my head. Before the exams, I marched off to my friend S's place to get her help. She was doing her commerce graduation and I hoped she would help me to pass that paper. I ended up studying very little that day. The time was spent in catching up on what was happening in our life and having those delicious fish cutlets her mom had made ??.I did pass that paper that semester.
Cutting back to the present - every year a month before the returns have to be filed, my dad keeps reminding me to let him know when I receive the Form16. I start looking out for that email from the finance team with the Forms16 subject. When I get it, I download and take a print out and give it to my dad. We then connect with my auditor to get the returns filed.
What I did not understand was why is this such a complicated affair. Why can't they have a system where if a person feeds the income, savings and all details, it just computes and tells what the tax amount is. Bingo!!! All the individual has to do is take a copy and pay the tax. It should be that simple for people with just one income or who are salaried employees. The income tax department will then need to validate the savings and income that was submitted.
On the other hand, the system is really complicated. Almost everyone needs an auditor to help them in filing their tax returns.
The other part I did not understand was the concept of advance taxes. As a layman, all I understand is if I am able to predict what might be my earnings for that financial year, then I can pay an advance tax. Great concept.
Why the hell do we have penalties for not paying something in advance. I mean what if I have a sudden cash flow that I did not anticipate. Why should I be penalized for not paying the tax for that in advance? What kind of logic is that.
And shouldn't advance tax be just an option and not made mandatory. In fact, people paying advance tax should be given brownie points because they are paying well in advance.
Phew, I can never understand why some of these policies have been formulated. It should be simple for an ordinary citizen.
I have never really understood finance terms. Sometimes I search on the internet to really understand if debit means taking money out or putting money into one's account. Yeah, that is how bad I am. I had one paper on commerce/financials in my under graduation. I had sat through the classes without really understanding the concepts. They just flew off my head. Before the exams, I marched off to my friend S's place to get her help. She was doing her commerce graduation and I hoped she would help me to pass that paper. I ended up studying very little that day. The time was spent in catching up on what was happening in our life and having those delicious fish cutlets her mom had made ??.I did pass that paper that semester.
Cutting back to the present - every year a month before the returns have to be filed, my dad keeps reminding me to let him know when I receive the Form16. I start looking out for that email from the finance team with the Forms16 subject. When I get it, I download and take a print out and give it to my dad. We then connect with my auditor to get the returns filed.
What I did not understand was why is this such a complicated affair. Why can't they have a system where if a person feeds the income, savings and all details, it just computes and tells what the tax amount is. Bingo!!! All the individual has to do is take a copy and pay the tax. It should be that simple for people with just one income or who are salaried employees. The income tax department will then need to validate the savings and income that was submitted.
On the other hand, the system is really complicated. Almost everyone needs an auditor to help them in filing their tax returns.
The other part I did not understand was the concept of advance taxes. As a layman, all I understand is if I am able to predict what might be my earnings for that financial year, then I can pay an advance tax. Great concept.
Why the hell do we have penalties for not paying something in advance. I mean what if I have a sudden cash flow that I did not anticipate. Why should I be penalized for not paying the tax for that in advance? What kind of logic is that.
And shouldn't advance tax be just an option and not made mandatory. In fact, people paying advance tax should be given brownie points because they are paying well in advance.
Phew, I can never understand why some of these policies have been formulated. It should be simple for an ordinary citizen.
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