For people who are in India, today is the last date for ITR submission. For the salaries we earn, we have to pay taxes to the government as per the laws. The tax amount is based on the salary we draw and determined based on the tax slab we fall under. Today is the last date for Income Tax Returns submission in India for the assessment year 2023-2024.
Many people do the submission with the help of auditors but for salaried employees, it is usually easy because the tax is deducted by the Employer and we just have to declare the Income from additional sources and enter the deductions and pay the tax accordingly. In Form 16 provided by the employer, all the details of income and deductions are mentioned clearly. Some companies take the burden of collecting the other tax parameters of the employee where they calculate the final taxable income based on the deductions they provide and pay the tax accordingly.
Toward the end of the year, all we have to do is verify the data provided in Form 16 and then add the additional income if we have any, and pay taxes accordingly. A few years back the share trading amounts were not clearly visible in the tax calculation but these days after the government linked the demat account with the PAN number, that income and transactions are also visible to the tax department, and the tax is calculated accordingly.
Usually, the government used to extend the tax submission dates by a month or so. But this year they did not announce anything about extending the dates. The tax department is continuously providing data in the form of tweets or other sources on how many people have submitted returns so far and what is the amount. This is a nice thing and is made possible with the digitalization of everything. Imagine how hard it would have been for people to do all these a few years back. Every year there are improvements happening.
The government has also announced that they are very strict on fake proof submissions. When I was having conversations with some of my friends, they did mention that some auditors enter fake values in certain sections of the ITR submission and try to make use of the loopholes to get more returns from the tax department. Sometimes the tax department might notice it and send a notice back for further proof or explanation but sometimes the tax department would miss it. The auditors make use of that opportunity to get a percentage of the returns received from the tax department.
It is very interesting to read that this year the government is making it hard for such people and there is a 200% extra penalty for people submitting fake proofs. Most of the time people submit fake proofs only on HRA where they provide fake rental receipts. The tax department has mentioned that if something like that happens, there will be serious action taken against such people.
I personally think that the tax department has improved so much and the tax collection is also getting better. The new Tax regime by the government is also looking better and hustle-free compared to the old one. Many people have started opting for the new tax regime. Hope all the taxes collected are used to make India one of the finest places on Earth to live.
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