Important

LET US CELBRATE SWAMI VIVEKANANDA

You are all aware that Swami Vivekananda was born on the 12^th Of January 1863 in Kolkatta. He was then called Narendranath.

Due to his family background he got appropriate religious upbringing as well as very spiritual and knowledgible.

I take this opportunity to highlight some of his Golden Thoughts which is very relevant even today:

He was very fond of addressing the Youth

He was very fond of talking on Education and its importance.

On education he always advised the youth to have Physical education, Mental Education, Relegious Education, Educating the women, and Value added education.

He opined that education should lead to expansion of humanity and completeness in mind.

Education is the only solution to all the problems of the Country. It will solve all the personal, Social and National problems.

Education will carry the man from limited boundries to limitless eternity.

Education is that one which will build personality, leading to Character building which results in Nation building. A person has to educate and shape himself, leading to a good society and resulting in a healthy nation and the World was his opinion.

He always felt that in order to inculcate new dimensions in life, one should take shelter in education and religion. Unless great ideas are given to a person, he will become a NARI instead of HULI.

Study of Religion and culture along with Science is very important, which will increase the worldly knowledge he always said.

He always mentioned that those who are rich and educated who treat those successful from their sweat and hardwork with contempt, as traitors.

By seeing the foolishness of the Rich and the educated, he said - “Give light to the Poor, more light to the Rich and Give light to uneducated and more light to educated”

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General Information

“Ignorance of law is not an excuse".

Above saying is also applicable to Income Tax Act & filing of tax return. Many times a tax payer makes many mistakes while filing his tax return in the month of July.

They are:

• Non disclosure of Interest income (from FD or SB)

• Non disclosure of Short term capital gain from shares

• Non disclosure of Salary from Previous employer (when there is a Change of Job)

• Non Disclosure of Rental Income

• Non disclosure of Capital gains from sale of Property

• Wrong claim of HRA

• Wrong claim of deductions under Chapter VI

The above errors may happen out of ignorance or may be casual approach towards these sources.

But following may be the consequences of not disclosing:

◘ Additional tax liability and incidence of Interest under Sec.234A, 234B and 234C

Sl.No.	Section	Details
1	Sec 234A	1% per month of Tax payable amount from due date of filing
2	Sec 234B	1 % per month of Tax payable amount if it exceeds Rs 10,000 from due date of filing
3	Sec 234C	3% on Tax Payable amount

◘ Failure to comply with any order from the IT department may result in penalty of Rs 10,000.

◘ Concealment of Income Section 271(c) - ITO has powers to levy penalty of 300% of Tax liability other than above interest. But this provision is being used rarely.

◘ Your case may be selected for scrutiny.

◘ Since penal provisions are more tough, it is better to disclose income from all sources received during the year. Any omission unknowingly can be rectified by filing revised return by disclosing all the income and pay proper taxes thereon.

◘ Revised return can be filed any time within two years of fling the regular return, but before the assessment is completed.

◘ Similarly any deductions omitted to be claimed can be claimed by filing revised return as explained above.

You can take following steps to minimize errors in your tax returns.

○ Analyse your bank pass books and your expenditure on credit cards/cash/and cheques.

○ Keep track of your income from interest, from stock market, from sale of properties and such extraneous sources of income.

○ Keep a list of exempted income as the same is required to be disclosed even though it is not taxable.

○ Keep a list of all the transactions which is above a threshold limit which needs to be reported to the income tax department; eg: investment in MF exceeding Rs.2.00 lacs; Expenditure through Credit cards exceeding Rs.2.00lacs, Purchase/Sale of Immovable property above Rs. 30 lacs etc.,

○ It’s always better to consult your tax experts well in advance of due date of filing of tax return with following documents

○ Be very strong in filing the documents. Your documents need to be preserved atleast for a period of Six years in case of sources of Income and Expenditure and Investment proof have to be probably preserved for your life time.

Point to Ponder

General Information