Taxes

see seems like a fishseller to me....:sidefrown:

The problem with such type of politicians is that they stall/obstruct and even destroy any and every project which there opposition will come up with!
The idiot drove out nano and now the car is suffering and the state lost lakhs of jobs due to it too.
And now a days it is becoming a national phenomenon...i read somewhere that jayalalitha has stalled 90% of the projects initiated during karuna's rule..
I am really sick of this people..:bulgy-eyes:

Strange. First time I am hearing an anti Mamata voice from Bengal. What happened to all those people who were hailing her to change the face of Bengal? So far she has changed only the name. Her aspirations for change Calcutta to London, Digha to Goa, Siliguri/Darjeeling to Switzerland. Whatever happened to those? Singur land returned? Life in Nandigram reinstated? 100 days in power and I am probably mistaken, but no action has been taken on any of these. Sure they don't happen overnight, but there has to be some sensible step !

Anna effect: Tax evader welcomes I-T sleuths - India - DNA

Big deal. EVERY tax payer (ok, may be 99%) in India is a tax evader. How many declare interest from savings account in their returns?

I notice she is not complaining about EVMs this time.

Not surprising, isn't it 😀

Arindam at Ramlila

The guy who runs an educational institution with a trader's license? Right.

Big deal. EVERY tax payer (ok, may be 99%) in India is a tax evader. How many declare interest from savings account in their returns?

The returns that i have prepared all had Savings Bank Account interest included. Be it any assessee.

^ Now that's a first I am hearing. Most people usually do not declare savings or FD interests in their returns. Funnily enough, I do, and I also do not give false medical bills or fake rent receipts and the like, while I know a LOT - in fact everyone I know - who do this. Ironically, they were protesting 'corruption' in the system. I don't think they have a right to after indulging in all that they do. Some of them even had the audacity to submit fake bills last week (we have a quarterly system)

https://imgur.com/OhP2m

Corrupt politicians. Comics. | rajneeshkapoor

If u have dark past, but a clean today, then its alright. But if u have a dark/clean past, and a dark today, then that person doesnt have the right!But yeah, the returns that i have prepared all were with every detail possible. My boss didnt allow incorrect returns to be filed.

^ Exactly. It is one thing if someone is changing / has changed. However, if someone hasn't and doesn't display any intentions to, it is just double standards when they protest something done by them, but only when its done by others!For instance, we got this notice at office stating that the IT department now mandates the landlord's PAN for rents in excess of 15K per month (I still need to find out where they got this info from). People are pissed that they now will have to restrict the amounts on their rent receipts. What nonsense.

well i guess... if people realize that the government is doing enough for them, they would not mind paying proper taxes. i mean i have talked to people in european countries. taxes are shit high in most european nations. but most of them do not mind because of the facilities provided by the government. here... you suffer from bad roads, power cuts, crappy water supply, disgusting civil hospitals etc etc. and when it comes to paying taxes, it looks like government sponsored terrorism.

OT:

we got this notice at office stating that the IT department now mandates the landlord's PAN for rents in excess of 15K per month

Actually its an amendment brought by the Finance Bill 2010 that PAN is necessary - whether u have to deduct tax or not. If PAN is not given by the assessee, then tax wud be deducted at flat rate of 20% + cesses. This is basically to ensure that people comply with PAN regulations.

The returns that i have prepared all had Savings Bank Account interest included. Be it any assessee.
See, there is something that does not make sense with agantucks story about savings & FD's because banks automatically deduct TDS on interest anyway. As an NRI you can get away with it otherwise no.

I've always had to get the banks to make out an interest cert otherwise you end up paying more tax.

You will have to be above water if you prepare tax returns otherwise the govt will come up after you.

^ Now that's a first I am hearing. Most people usually do not declare savings or FD interests in their returns. Funnily enough, I do, and I also do not give false medical bills or fake rent receipts and the like, while I know a LOT - in fact everyone I know - who do this. Ironically, they were protesting 'corruption' in the system. I don't think they have a right to after indulging in all that they do. Some of them even had the audacity to submit fake bills last week (we have a quarterly system)
Risky business, if they get caught then how big will the fine be. They've lowered the tax slabs over the years to get everyone into the tax net. Now you might hear of those getting away with it, how long for ? and do you ever hear about them getting audited. Got to hold onto 7 years worth of records.

For instance, we got this notice at office stating that the IT department now mandates the landlord's PAN for rents in excess of 15K per month (I still need to find out where they got this info from). People are pissed that they now will have to restrict the amounts on their rent receipts. What nonsense.
Yeah, i've heard about this too. thought PAN was only required for amounts over 50k. No doubt its because of what you said.

See, there is something that does not make sense with agantucks story about savings & FD's because banks automatically deduct TDS on interest anyway. As an NRI you can get away with it otherwise no.
I've always had to get the banks to make out an interest cert otherwise you end up paying more tax.


Banks do not always deduct TDS on Savings or FD interest. That happens only if the interest in a year from a particular branch goes above 10K. Otherwise there can be no TDS. I was talking about those cases where the interest is less than 10 K a year. This is the general case. The bank does not deduct TDS in such cases, but expects the beneficiary would mention it on his accounts. People rarely do.

If one does not come under the taxable bracket, they can submit a 15G (or 15H for senior citizens) and the bank or financial institution will not deduct tax on such accounts. If you want to avoid this hassle, break up your investments into multiple parts across branches such that the cumulative interest from a particular branch doesn't cross the 10K limit. Jaymin is a certified CA and he can clarify on this.

Risky business, if they get caught then how big will the fine be. They've lowered the tax slabs over the years to get everyone into the tax net. Now you might hear of those getting away with it, how long for ? and do you ever hear about them getting audited. Got to hold onto 7 years worth of records.



3 years, not 7


@admin, please move our tax related queries to a different thread 🙂

Yep. Banks dont always deduct tax at source.

But even if they do, WE STILL HAVE TO SHOW IT IN OUR RETURN. Coz otherwise, ur Tax liability will reduce, & hence the Tax deducted by the bank, will appear as a Refund due from the Dept. Thats not right!

U cant give the excuse that "Bank has deducted Tax at source, & hence i need not include it under my incomes."

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3 years, not 7

In cases where evasion is involved, there is provision under few sections to re-open past 6 years' records, and even more. Wud need to go thru the provisions again, if we want to debate in detail over this! 😀

Banks do not always deduct TDS on Savings or FD interest. That happens only if the interest in a year from a particular branch goes above 10K. Otherwise there can be no TDS. I was talking about those cases where the interest is less than 10 K a year. This is the general case. The bank does not deduct TDS in such cases, but expects the beneficiary would mention it on his accounts. People rarely do.
Less than 10k a year is peanuts. How much are the taxes on that, 1k, 2k, 3k depending on which tax bracket you fall into.

If one does not come under the taxable bracket, they can submit a 15G (or 15H for senior citizens) and the bank or financial institution will not deduct tax on such accounts. If you want to avoid this hassle, break up your investments into multiple parts across branches such that the cumulative interest from a particular branch doesn't cross the 10K limit. Jaymin is a certified CA and he can clarify on this.
This is correct but as your assets increase so will the number of banks you deal with. It isn't practical above a certain point.


3 years, not 7
ok

In cases where evasion is involved, there is provision under few sections to re-open past 6 years' records, and even more. Wud need to go thru the provisions again, if we want to debate in detail over this! 😀

Dude, can you check on that if possible? Reason is I claim some (genuine) refunds during the returns process, and I only have proofs only for the last 3 years as I thought that is the time limit, come what may. I think I remember reading that if there is no dispute raised by the IT department within 3 years of filing, they cannot take action as the assessee is not bound to have the proofs any more.

Less than 10k a year is peanuts. How much are the taxes on that, 1k, 2k, 3k depending on which tax bracket you fall into.


10K interest isn't really peanuts to a lot of people. I mean, @ 4% a year, an account needs to have at least 2.5 L per day for the whole year. Most of the middle class in India doesn't usually have that much liquid cash, be it in savings or FD. It therefore does make it sound a bit too punishing on the middle class to part with their interest income too in light of the tax laws, but that is another aspect altogether.

This is correct but as your assets increase so will the number of banks you deal with. It isn't practical above a certain point.



Again, not banks, but branches. You can have say 10 different accounts with 10 different ICICI branches. People do use these tactics for easier tax evasion. There is always the excuse of "oh, I didn't know we need to declare", or "I forgot to include :S "

Dude, can you check on that if possible? Reason is I claim some (genuine) refunds during the returns process, and I only have proofs only for the last 3 years as I thought that is the time limit, come what may. I think I remember reading that if there is no dispute raised by the IT department within 3 years of filing, they cannot take action as the assessee is not bound to have the proofs any more.
I was under the impression it was 7 years but thats what i heard some time back.

10K interest isn't really peanuts to a lot of people. I mean, @ 4% a year, an account needs to have at least 2.5 L per day for the whole year. Most of the middle class in India doesn't usually have that much liquid cash, be it in savings or FD. It therefore does make it sound a bit too punishing on the middle class to part with their interest income too in light of the tax laws, but that is another aspect altogether.
Which person in their right mind is going to keep 2.5L in a current account that only earns 4% ?

..instead of shifting it to a FD that will earn double that amount. Break the FD whenever as there is no penalty.

Again, not banks, but branches. You can have say 10 different accounts with 10 different ICICI branches. People do use these tactics for easier tax evasion. There is always the excuse of "oh, I didn't know we need to declare", or "I forgot to include :S "
I would not term what you said as tex evasion but rather tax avoidance.

Again, if you earn more in FDs after some time you're going to run out of branches to bank with 🙂

Your idea works maybe for the first few years out of college, after that it will become unmanageable.

Firstly - theres 3 different things - 1) Tax Planning2) Tax Avoidance3) Tax Evasion.Very thin line of difference separates these 3. VERY VERY THIN. If u put money in 10 different branches, which even serves some purpose to u, thats called Tax planning. But if u deliberately do that, JUST FOR THE SAKE OF BY-PASSING IT PROVISIONS, its called "Avoidance".Whereas if u claim tax-free income despite having some liability thats flat Evasion. Planning is allowed. Avoidance - well it depends on case to case & Evasion - Crime......@ agantuk, i will get back to that thing of 6 years, by tomorrow, or may be later this night. Want to see the T20 now!! India is batting.