This is when most Indians will have to prepare all the proofs for our income tax submissions. People with a full-time job will be offered to provide all the details to their employer and the employer will verify it and issue form 16. This Form 16 will have to be used to submit Income Tax Returns. People who don't have any returns from the IT department should also file zero returns. This procedure has seen a lot of improvements in the last few years. I have been doing this process for the past 15 years since I started working and generating money.
So now it is time to send the bills to the employer and get the income tax exceptions. The last two weeks have been busy in that process. We have two opportunities to do this. One opportunity is this month, and another is next month. After that, if we would like to get any returns, we have to take care of them directly in the ITR portal when we submit our income tax returns directly on the government website.
We cannot evade taxes
After a point, no matter how many proofs you submit, it will not matter because we will not be able to evade more taxes, and we will end up paying more taxes. Otherwise, up to a limit, we can reduce our taxes to some extent by providing our investment proof. Some investments have tax benefits if we use them wisely. I hear that some companies have no taxes, but even they are slowly thinking about introducing some fixed taxes.
Now we have two types of tax regimes. The old tax regime provides more facilities to submit investment proofs and get tax exceptions. The new tax regime also has some features but the benefit is in the percentage of tax. When calculated, there is no huge difference but based on the salary and the investments we are making, it does make a lot of difference. It is important to wisely choose the tax regime. With the new tax regime, we don't have the headache of submitting proofs. I think the government is slowly moving everyone towards the new tax regime so that they can provide a flat tax to everyone.
Tough to submit all proofs
I have a facility to submit my petrol bills and telephone bills to get a tax exception. The petrol bill is easily manageable because I travel a lot and it is easy to get petrol bills. But this is not the case with telephone bills. It is hard to spend too much of the telephone because the internet charges and the mobile charges are not that high for me. This is where I couldn't do much and end up leaving the funds for taxes.
Other types of proof can be easily submitted. In my company, they provide these things as extra allowances, and if I submit a bill, they give me the full amount. If I don't provide the bill, they give it to me by deducting the taxes accordingly.
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