Moneylife’s online survey on tax compliance and issues shows that one out of ten respondents indulges in tax avoidance, which can land them in trouble. TDS credit mismatch is still an issue for 40% of respondents
A survey conducted among Moneylife readers on tax compliance and issues shows that respondents have varying degrees of awareness of various tax implications. Almost 8% have income from ‘other’ sources (business, bank fixed deposit-FD, stock/ mutual fund dividends/ capital gain), but do not show these in their tax returns. Over 9% even file form 15G/15H to prevent TDS (tax-deduction-at-source), even though they owe tax. Both the cases can be termed as tax avoidance which is a serious offence as we mentioned on our Cover Story “10 ways your unpaid income tax may boomerang” .
Our online survey received 715 responses.
Three out of four respondents are aware of advance tax (different from TDS) payment rules. But, only one out of two is aware of what assets attract wealth tax. Even worse, only one out of three know about annual information return (AIR) and how it can affect them.
Two out of three respondents always view Form 26AS before filing tax returns. Surprisingly, only 62% of respondents find that Form 26AS TDS credit matches with the tax deducted in reality. It means you will have to check with the bank/company to ensure that it gets corrected; otherwise you will end up paying taxes you really don’t owe.
Only 61% get Form 16 (salary) and 16A (other than salary) on time and without any hassle. These forms are your right and, hence, demand it from the concerned bank/company. Your TDS certificate is your credit receipt for taxes paid. Nearly 40%, do not file Form 15G/15H to prevent TDS deduction if they don’t have any taxable income.
Here are the Survey results in detail…
Please read Moneylife Cover Story - 10 Ways Your Perfect Tax Return Can Boomerang
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This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
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just wait and watch. for all you know everybody will soon receive a computersied 'not requiring signature' love letter from delhi ostensibly quoting a AIR.
I'd suggest everybody reads Mr. Nani Palkhiwala's Foreword to his book- it's a piece of English literature. One of the most appropriate things mentioned therein is that Tax avoidance is a crime but tax planning is perfectly legal.
Unfortunately the dividing line between the two is extremely thin. Tax planning by a tax payer-assessee can be 'deemed' to be avoidance by the tax collectotr.
Those with taxable income shouldn't file Forms 15G/H. Banks should point this out.
Not disclosing/overlooking Income from Other Sourceslu can attract penalties for concealment.
The AIR may be a good tool as per PC, the FM, but it has turned to ben extremely bad instrument. The computer output that "does no trequire any signature" mindlessly issues notices left right and centre without any application of mind. The left hand doesn't know what the right hand is doing. The local jurisdictional officer who normally assesses you comes to know of the notice when you draw his attention to the asseesment orders passed him long ago.
I'd suggest everybody reads Mr. Nani Palkhiwala's Foreword to his book- it's a piece of English literature. One of the most appropriate things mentioned therein is that Tax avoidance is a crime but tax planning is perfectly legal.
Unfortunately the dividing line between the two is extremely thin. Tax planning by a tax payer-assessee can be 'deemed' to be avoidance by the tax collectotr.
Those with taxable income shouldn't file Forms 15G/H. Banks should point this out.
Not disclosing/overlooking Income from Other Sourceslu can attract penalties for concealment.
The AIR may be a good tool as per PC, the FM, but it has turned to ben extremely bad instrument. The computer output that "does no trequire any signature" mindlessly issues notices left right and centre without any application of mind. The left hand doesn't know what the right hand is doing. The local jurisdictional officer who normally assesses you comes to know of the notice when you draw his attention to the asseesment orders passed him long ago.