Income Tax Calculation – How much time Payroll can save ?

The filing procedure for the return of the income tax service in India i.e. IRT has already been started with the government notification. People have started filling up forms for the new Assessment Year which is 2018-19. In this news, the individuals have to provide the details regarding their income ranging from the break-up of their salary to quoting the gross receipts according to the GST returns. This year the preceding day to file the IRT is 31st July, therefore, people must avoid filing returns at the last moment. As per reported the income tax report has been changed and made more strict. If any individual tent to cross the deadline then a heavy penalty would be charged against him.

The gathering of the Income-tax was well organized and it is gathered as a foremost part of the income of the state. The tax never increased but on the other hand, it affected the economy. The payroll of the employees is to be calculated from the gross monthly salary wage earnings and from the other several payroll deductions to reach the net pay. It may sound simple but it’s not. Calculating the numerous payroll deductions involves the individual studying every detail with attention and accuracy.

Have you ever thought to save some amount while paying your tax? If yes, then how? Let us understand by the following method how can we save time and money together.

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Avoid Penalty

According to the report by the income tax service in India that from the last financial year i.e. 2017-2018 the late fee of Rs. 5,000 has been added along with the amount. The penalty amount increases as the individual miss the December 31st, 2018 deadline. If any individual files an ITR after 31st December 2018 then he has to wage a late fee of Rs.10, 000. This penalty depends on the people as per their wages. People who are earning less than 5 lakhs will be paying the penalty amount within Rs. 1000

Dipping Interest Burden

The late filing of the ITR would feel like a burden if the tax liability is unpaid. If the individual has the tax liability and has not yet filed their returns then the interest charges might be added as 1% SI on a per month basis till the number of months is delayed. This law falls under the section 234A of the income tax service in India

Maximizing Interest Income

If in any case the individual pays excess tax and it has to be refunded then the tax department has to pay interest at the rate of 0.5% pm for the number of days delayed by them. The refund of the amount takes a bit of time to come back to the individual.

The period of delay is considered from the foremost day of the assessment year to the last day the refund is received by the individual. If in any case the filing of the return is delayed then the period for the interest will be considered from the day of filing the return to the date when the refund is received.

Carry Forward of Losses

Until the individual fills the return the loss amount can’t be forwarded on the day off before the due date. There are two other benefits and i.e. the carry forward and the set-off of losses. The only way to carry forward the loss and set off the losses happens with the house property.

So, this year every individual must try their best to file the income tax return on time as delay can lead to unnecessary hassles. You must carry all your important documents and avoid the last-minute rush which might lead you to any kind of technical failures and therefore delay the process of filing the income tax return.