For the last one and a half years, Corona has kept people harassed. Due to this epidemic, many people lost their jobs last year. The salary of some employed people was cut. A large number of people withdrew money from their funds during this difficult time. During this, many exemptions were also given by the government. Like the exemption of withdrawing tax free money from EPF account. Once again the tax filing season has started, so if you are filing ITR, then keep in mind that the money withdrawn from EPF will have to be shown while filing the return. There are many things to keep in mind while filing ITR this financial year –
If people have to face cut in salary, job loss or delayed payment of salary due to Kovid-19. If you have faced such circumstances then you should make sure whether you are paying the correct tax or not. Usually, the salaried person is not very concerned about the tax as the employer does this work for them. But due to lack of one rule of income tax, many times the salaried person has to face the notice. Let us first understand what are the income tax rules for a salaried person.
According to Delhi-based Chartered Accountant Tarun Kumar, “As per income tax rules, salary income is taxable on the basis of arrears and received. It is the responsibility of the employer to deduct TDS at the time of payment.
Suppose if the employer did not pay the salary for March and then added it and paid it in April which is part of the next financial year. The salaried person will have to pay tax notwithstanding the fact that the employer will deduct TDS while paying the salary. According to Tarun Kumar, ‘The employer has not deducted that part of the tax due to withholding of your salary, so the employee should self-assess and pay the same tax.’ TDS refund can be claimed in the next financial year. Apart from this, your claim of deduction or increase should also be reflected in your salary slip. He will act as a proof.
Withdrawal from EPF-
Various exemptions were given by the government regarding EPF fund withdrawal. There are exemptions like 3 months advance withdrawal. This exemption was given by the government so that people suffering from the corona epidemic could get financial relief. Even though this money withdrawn from EPF comes under the purview of tax exemption, yet it has to be shown while filing ITR.
The extra money received by the company will be taxable.
Due to the Corona epidemic, a large number of companies have promoted the culture of work from home. In such a situation, if you have been paid for furniture or other facilities on behalf of the company, then keep in mind that it will be fully taxed. This is because the company does not deduct TDS on such payment.
Show the aids received in the name of Kovid-19 under the ambit of tax
Recently, the assistance received by the government in the name of Kovid-19 has been kept out of tax. But while filing ITR, keep in mind that it should be shown in the exempt list. Failure to do so may result in a tax notice.
