Saturday, May 21, 2022
HomeFinanceIf you are giving information about salary and PF in ITR, then...

If you are giving information about salary and PF in ITR, then remember these 5 things, otherwise there can be a big loss

Due to the deteriorating condition in Corona, have you taken financial help from the government? As help, you have borrowed money or taken a loan. If so, remember the tax rule and mention it in the ITR. Otherwise, there may be a hassle of notice.




Tax filing season has started. In view of Corona, there have been many changes in tax and PF. Due to Corona, many adverse situations have come in front of the people. Many people have lost their jobs, many people’s salaries have been cut and many people’s salaries have stopped. The government has made many changes in the tax rules to give relief to the taxpayers from Corona. Even the withdrawal of funds from EPF has been made tax free. You have to keep these changes more in mind when filing Income Tax Return (ITR). It is necessary to mention these things in the ITR, otherwise you may have to pay for taking. A notice can also come from the Income Tax Department.

First and foremost thing. If your salary is deducted then be careful. The CTC of the company should also be the same when the pay is deducted. Tell the HR of the company that the new CTC paper should be made by mentioning the pay cut. You have to give this information while filing ITR. If you do not do this, then there may be problems in the future. It may be that someone’s salary has been stopped or has been increased for the future. In such a situation, it is necessary to pay advance tax on the salary. It is necessary to do this work when TDS has not been deducted in that financial year. Let us know these things in 5 points.

1- If the salary is withheld then the effect on the tax

Due to Corona, the effect is being seen on the salary of many people. The salary of many people has been postponed. If this has happened, then make sure that you have paid tax according to the salary. Many times it happens that employees assume that the job of paying taxes belongs to the company, so they do not pay much attention. If the company has paid less tax in case of salary deduction or deferment, then you may be stuck. A notice may come from the tax department or there may be a need to pay damages. Therefore, it should be understood properly how much tax has to be paid on the salary. The rule is that if the company has not deducted tax on any part of the employee’s salary because the payment is deferred, then the employee is liable to pay advance tax on that part of the salary. If someone does not do this, then he may have to pay damages with interest.

2- What to do if you are withdrawing money from PF

Last time due to Corona, the condition of the people became bad. The expenses remained the same but the earnings either got sunk or got written off. People made full use of PF funds to meet expenses. If you have also done this then it is important to know the tax rules. Apart from EPF, the same rule applies to PPF as well. According to the law, the money withdrawn from PF or EPF may be tax free, but full information will have to be given in the ITR. EPF has stated in its FAQ that the tax rules do not apply to those who have taken advance under the EPF scheme. Therefore, you can write this money tax free in ITR. However, if you withdraw money from PF in general, then its rule is different. There may be tax obligations on it, which must be mentioned in the ITR.

3-Know that allowance is taxed

In Corona, companies have started giving work from money as part of salary. That is, companies have added reimbursement to the salary of the employees. If this is happening to you also then you will have to pay tax on it. Its rule is very clear. There will be no tax exemption on this. If you are a consultant, then you can run the work by deducting TDS at the rate of 10%. But if you are a full time employee, then you will have to pay tax according to the tax slab on the money received in the salary part. This should be mentioned in the ITR. If the company gives electricity bill, phone bill or internet bill as reimbursement, then it can be claimed by showing it in ITR.

4- Have you taken any financial help in Corona?

Due to the deteriorating condition in Corona, have you taken financial help from the government? As help, you have borrowed money or taken a loan. If so, remember the tax rule and mention it in the ITR. The government has made a new rule regarding the treatment of Kovid. Financial help is being given to the people by the government. If the company has helped in the treatment of Kovid, then it is tax free in this financial year. You have to show this income in the exemption section in ITR. However, the final decision is yet to be taken on this. Therefore, if you are going to file ITR for the current financial year, then avoid these mistakes.

5- If you have bought furniture for work from home

Keep in mind that many people have made office setup at home for work from home. For this, expenditure has been made on furniture etc. If an employee wants to take tax exemption by showing this expense in the allowance, then it will not happen. If you have taken an allowance to buy furniture, then tax will have to be paid on it. It should be mentioned in full in ITR. You can take a discount on the cost of telephone, internet, newspaper etc., but not on the furniture.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments