How to Handle Taxes for Incomes Not Received


Bangalore: We all are suffering from tax fever these days. Our temperatures are also rising as the new tax structure has not proved to be very helpful for employees. Paying the right amount of taxes becomes trickier when we do not receive our income, from various sources, but are still taxed for them. Arnav Pandya, of MoneyControl.Com, gives possible solutions in this sticky situation of tax dilemma –

Reason Behind Not Receiving Incomes on Time

Many a times the income earned from various sources does not make its way to the rightful owner on time. This may be because the income earned on an investment will only be paid to the investor after the lapse of the closure period, or only at the end of the period of investment. Income earned on investments can also be reinvested in other ventures and this too makes taxing tricky. This makes taxation of income earned difficult because technically, the investor has already received the income. As this is a very slippery slope, the following steps can be adopted to handle such cases.