Bursting Myths about Tax Filing and Tax Consultants
When tax season rolls around, one of the biggest questions is always, “Should I file my own taxes or hire a professional?”
Whether it makes sense to file taxes by the self-using an online software program or work with a tax consultant is a personal choice. You can make the decision easier by dispelling some of the myths and misconceptions about tax filing and hiring a tax pro. Because of the confusing law that is governing Income Tax in India, it is hard to understand the exact procedures involved in filing taxes. It is because of this confusion that people end up believing in false or half-baked information, which propagates several myths in the minds of the masses.
With the rapid increase of technology, the process of income tax has been simplified but still, some people believe in myths about tax filing and hiring a professional, therefore, it is vital to burst the below-mentioned myths so people can understand the taxation policy better.
- Working With A Tax Professional Is Time-Consuming
If you feel that tax filing is a time-consuming work and you want to spend minimum time on it then the good news is that you can get your taxes professionally prepared without tying up your already busy schedule. There are plenty of applications that can help you to get professional tax help right from your couch. You simply upload your tax documents and you will be matched with a tax consultant who is qualified to handle your unique tax situation.
You save time since you don’t have to visit the tax consultant. You can also get your tax prepared by just dropping off your documents and a professional can prepare it for you. There’s no appointment needed to have a tax expert to prepare your return. Once you are done with your work, you can choose the best time to drop off and pick up your returns.
- E-Filing Is Not A Safe Option
In these modern times, when digital penetration peaks at an all-time high, online banking and financial transactions have become increasingly safe and secure. Robust cryptographic encryption and increasingly secure transmission channels with security measures like OTPs and 2-factor verification have contributed to this. Additionally, there are several other benefits of filing tax returns online, like faster processing, and greater accuracy. In short, e-filing is entirely safe, and in fact, a superior option.
- Income Tax Should Be Filled Only If You Are Making Profits
Contrary to popular belief, even if a company be it LLP or partnership is not generating any profit, that is to say, there is no income but rather a loss, it is made compulsory by the government that income tax must be filed. In fact, in cases of an entity duly filing loss in their IT returns, the future tax liability of such an entity can be further diminished in subsequent financial years.
- IT Returns Should Be Filed If The Tax Liability Is Due
There are many scenarios when the tax liability of a person is fulfilled by the indirect methods like TDS and TCS or it is discharged ahead of time by the way to advance tax. In such cases, most people believe that they do not have to file IT returns. However, that is not the case. Even in cases where a person might not have any tax liabilities due, IT returns have to be filed to serve as a record for both the government and the individual on taxes paid.
- A Tax Expert Can’t Help You Online
One of the primary benefits of visiting a tax office in-person is to speak with an expert and ask questions face-to-face. That doesn’t mean, however, that you can’t work with a tax consultant when preparing your taxes online.
Technology has streamlined the way to get answers to your biggest tax questions. You can connect instantly with a tax expert through live chat at every stage of the tax filing process if you choose to file yourself online. It’s like having your tax consultant on hand when you need them.
- In Case I Lose My Pan Card, I Can’t File My It
Once a PAN card is issued to the person then having the physical copy of a PAN card is not necessary. In any paper-based work of IT returns, PAN card’s online copy is enough to produce the PAN number. In this era of digitization, there is no need for your PAN card as everything is saved in their database.
- Tax Prep Is Expensive
Whether you choose a file your tax on your own or work with a professional, there’s a cost involved. If you’re budget-conscious, you may steer away from using a professional tax prep service but the good news is you can get tax help without breaking the bank.
Online tax consultants applications offer total transparency of price, so you always know what you’ll pay for tax preparation services. When you file online, Price Preview eliminates the potential for a surprise or unwanted fees later. Throughout the tax filing process, you can follow along to see what’s happening with your return and refund, if you’re owed one. These applications also offer you the benefits of free audit assistance in case your return is selected for an audit.
- If Not Filled, You Can Simply File Taxes Later Without Penalties
Income tax is not a voluntary payment but a permanent liability imposed by the government of the country on every person, natural or artificial. Not only is it a compulsory payment but in case of arrears in paying this tax, heavy penalties can also be imposed on defaulters as per the provisions of the Income Tax Act of 1961.
- Tax Can Only Be Filled By A Ca Or A Tax Consultant
The process through which one can file income tax has been simplified over the years as the number of forms required to file an IT return is reduced from 5 to 1. It is completely your choice to file your taxes on your own or take the help of a professional as there is no compulsory to hire a CA of a Tax consultant to file your taxes and do things for you. If you are able to do it then just do it.
- Gifts And Gains Are Predicted From Taxation Net
Any gift received by the assessee in the form of cash, gold jewellery, etc. beyond a fixed monetary value. As for the tax liability of windfall gains such as lotteries, or crossword puzzles, among others, TDS has to be cut at the flat rate of 30% in case the prize value exceeds a certain price.
Filing Tax Online
Filing taxes yourself using online software can offer freedom and flexibility since you can choose when to work on your return. But having your taxes professionally prepared may be easier and more convenient than you think. Using the right tax prep service can help take the stress out of tax planning all year long.
After busting these common myths of tax filing, now it will be easy for you to file IT return without much of a hassle. Another thing that you should know before filing tax is even personal loans can be tax-deductible in India. It is important to remember that regular payment of taxes on time is necessary not only to ensure that no penalties are imposed on the payee but also to contribute constructively towards the development and progress of the country.