- Date : 31/01/2023
- Read: 4 mins
In the past few decades, India has progressed towards a successful and technology advanced future. This future relies on the taxpayers as it is their money which is used for running the country and developing it. With the beginning of year 2023, all taxpayers must take a pledge to implement these professional tax resolutions for themselves and the country.
Paying taxes is the responsibility of every citizen and must be fulfilled to avoid legal consequences. The government of India has laid down various rules and regulations in the Income Tax Act 1961, as per which the citizens of the country must pay taxes on their income. Ensuring the taxes are filed correctly and abiding by all the rules allows the taxpayer to contribute to the country’s development. With the year 2023, we bring you the professional tax resolution you must take and follow for peace and security in the upcoming future!
Professional Tax Resolution 1: I will carefully examine my AIS (Annual Information Statement) before filing taxes.
The AIS is a summary of all transactions which have been carried out by the taxpayer during the financial year. All incomes and expenses are recorded as a part of this summary which is further utilized to calculate the taxes. The statement also comprises the TDS deducted or taxes paid in the name of the taxpayer. Before filing tax returns, the taxpayer must ensure that the AIS is accurate to avoid any confusion or legal issues in the future.
Professional Tax 2: I will disclose all assets and earnings, both Domestic and Foreign, while filing taxes
All taxpayers must disclose if they have any taxable income being generated from outside the country or any assets owned outside the country. As per the tax laws, not disclosing this taxable income or assets can result in legal consequences. The tax filed by the taxpayer can be examined even after 16 years for any such discrepancy.
Professional Tax Resolution 3: I will pay the taxes on Interest or Dividend income in advance.
For any interest or dividend income, every taxpayer must pay certain taxes to the government. Even though TDS may be deducted from this taxable income, a normal rate of tax is still applicable for taxpayers. These incomes are present in the AIS and can be verified by the tax authority. Therefore, non-payment of taxes on any such taxable income will lead to serious legal consequences.
Professional Tax Resolution 4: I will utilize tax deductions to save money
Every taxpayer may not utilize tax deductions, but every smart taxpayer utilizes all available tax deductions to save money. Taxpayers can save their hard-earned money by claiming various tax deductions introduced by the government, such as:
- Tax Deductions under Section 80-C (Up to Rs 1.5 Lakh)
- Tax Deductions under Section 80-CCD-1b (Up to Rs 50,000)
- Tax Deductions under Section 80-D (Up to Rs 1 Lakh)
- Tax Deductions under Section 24 (Up to Rs 2 lakh)
A smart taxpayer can claim the maximum from these deductions to save up to 5 lakh rupees each year on taxes. This money can become retirement savings for every taxpayer.
Professional Tax Resolution 5: I will confirm the details of TDS filled in form 26AS
Form 26AS comprises a record of all TDS deductions which have been levied and all TCS which has been paid by the taxpayer. The taxpayer must verify that all the TDS and TCS-related transactions are present in form 26AS. Any discrepancy must be immediately rectified.
Professional Tax Resolution 6: I will withdraw Rs 1 lakh of stock or equity fund gains before 31st March
As per government regulations, a gain of up to Rs 1 lakh from stocks and equity funds is non-taxable in a financial year. Taxpayers can utilize this regulation to enjoy profits without paying taxes on them. These savings can be used as retirement savings by the taxpayer.
Also watch: Ultimate Tax Saving and Planning guide
Paying taxes is not only a legal requirement but the responsibility of every citizen. Taxpayers can enjoy a peaceful life with a sense of security by upholding these professional tax resolutions in 2023. The government ensures that the taxpayers pay taxes through the enactment of various laws but also provides various deductions which can be claimed to enjoy benefits.