5 Things You Shouldn't Be Hiding From Income Tax Department
BENGALURU: The word ‘Income Tax’ brings shivers down our spine when the financial year starts. We all spend our money and buy expensive items all year round but when it comes to paying taxes, most of us back off because people always back away for showing their sources of income.
What they don’t realize is that the Income Tax Department might be aware about their financial transactions which will be analyzed by the end of the year. Yes, there are many financial transactions about which the department has a pre-hand knowledge even if you do not declare them in your Income Tax Returns, says Rediff.com.
Mentioned Below Are 5 Things You Should Not Hide From Income Tax Department:
1. Income Gained Through Interest
The Income Tax Department is already aware of your income because of the TDS returns filed by the banks. Tax Deducted At Source (TDS) is an effective way of conducting tax audits. Assessee is required to file quarterly return to Central Board Of Direct Taxes (CBDT) and these audits states the TDS deducted and paid to government during the Quarter to which it relates. Therefore you should not forget to declare your interest income.
2. Understating Of Your Salary
Many of us think that by understating one’s salary, they will be exempted and avail tax liability. But these assumptions are not true as people who do this do not have an idea that the Income Tax Department has all the information it needs about the salary paid to you by your employer. Employer files TDS every quarter of the year in which there are all the details of salaries paid to their employees. Thus, Income Tax Department captures all the salary data from banks TDS returns.
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