Do you have a professional to do your taxes? If yes, then you are aware of the fact that it doesn’t always come cheap. Whether your business is doing great in the market or not, you have to complete your tax returns and pay the professionals you have hired to do it for you.
Well, is there any way to save that service charge?
Yes ofcourse, you can do your taxes yourself and opt for a much less costly route. There are certain softwares available to do your taxes, which you can easily use without being an accounting geek. After spending a few hours with the software you will get acquainted with it. But, there are some key pointers that, you should know even before doing anything.
1. Review last year returns: If you are a regular taxpayer then you must be aware about the fact that the amount adding upto every year’s total, is different every year. So, it is significant to analyze the last year’s return that will help you to start your tax return this year.
2. Gather all necessary documents: Preparation is all you need before starting with the returns. As organizing is the key here; an important of it will be putting together all the financial documents, reducing the time taken in DIYing it. Meanwhile, you can also keep receipts of your charitable donations, medical expenses, business, and school expenses for a better understanding of your own Inflows and outflows.
3. Online or Offline: For your convenience, there two ways of tax returns i.e. online and offline. If you choose an offline process then, it will take a little longer than online as there is a physical element attached to it i.e going to the Taxation office, fill out forms, stand in queues and waiting for your turn etc. Meanwhile, if you choose the online process, make sure of certain things, to avoid errors like selecting the correct assessment year and codes.
4. Government website for support: As we said the offline process is time-consuming, it is better to opt for online methods. For online tax returns, go to www.incometaxindiaefiling.gov.in (a website owns by govt.). Apart from the website, there is a mobile application also which provides tax calculators and refunds & status check.
5. TRPs and Chartered Accountants: TRPs abbreviates from Tax Return Preparers. As tax files are a little complicated to understand for the general people who don't belong to this field. TRPs are there to help them understand and file the returns properly. Well, they don't charge much for that, as TRPs are appointed by income tax department to assist income tax assessments in filing returns. However, they are allotted in every area to help you in a tax audit, tax and multiple sources of income. With the complexities increasing the charges may increase too. You can also get an on-call advisory on fewer prices from experienced CAs.
These tips will help you to do your own taxes without giving burden to your pocket. Well, who knows? You may be the master in paying the tax returns and never need any professional or expert to do it for you but if the scenarios is in reverse fashion, you can take help from these tips and make sure that your taxes are done right.
Food 4 Thought
“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.
- Alexa Von Tobel ”
DID YOU KNOW
87% of adults say they are not confident about having money for a comfortable retirement.