Back Taxes: Resolving, Avoiding- Explained by CA in Durgapur
Resolve Back Taxes without any further penalties
Back Taxes are the taxes as per Indian Tax Laws that are unpaid by taxpayers. These taxes can come under the penalty bracket if not addressed properly. There are several reasons why a taxpayer can get back taxes. A CA in Durgapur can help you understand better about back taxes and how you can avoid them. If a taxpayer has not paid their taxes in the previous year, back taxes will be levied upon them in the current year.
Though the answer may seem simple, if you did not forget to file the taxes, then there would be no back taxes. But, if you are with an income tax consultant in Durgapur, you would know that there are several other reasons and situations based on which you can get a back tax levied.
Situations that Lead to back taxes
The first reason as you can guess is because they have forgotten to file their taxes in the previous years. So, the back taxes will be filed in the current year, where there would be options for them to pay for the taxes and also not get any fines.
If there are financial hardships, for a business or individual, then they might not be able to pay taxes on time. At these times, the better option is to contact CA in Durgapur and get the right assistance.
There are several individuals who do not go for hiring tax consultants, and such individuals or businesses, due to lack of enough information, misinterpret or miscommunicate tax laws, which results in incorrect reporting or underpayment.
Poor recordkeeping
There are small businesses that do not have a specialized individual or an income tax consultant in Durgapur hired for record-keeping purposes. In such times financial documents can be disorganized and not filed properly. This further leads to inaccurate reporting and getting back taxes.
Errors in reporting
When individuals and businesses do not hire a CA in Durgapur, there are errors in reports due to a lack of knowledge of tax-related regulations.
Other issues
Other issues may be related to personal relationships, moving, migration, and divorce, which may lead to overlooking the taxes to be paid.
So, these are the possible reasons, and there may be others, as it depends on the individual who is dealing with back taxes.
Avoiding Back Taxes is Easy if you are Mindful
Now, there are ways you can avoid back taxes, and I as a CA in Durgapur, and the owner of a CA firm in Durgapur will guide me to avoid these back taxes.
Timely Filings
This is the most important thing that an individual taxpayer can do firsthand. Consider hiring a CA in Durgapur who will as a part of their job itself, file your taxes within the due date, and avoid any back taxes and even late filings.
Accurate Reporting
When you hire an expert CA they will help you file your taxes accurately. In India, there are tons of cases where taxpayers have ended up paying more in the form of fines, due to inaccurate filings. And this situation is such, that they file the taxes just one or two before the due date, and this is the reason when they file it, if there are any errors they know it by the time, a new financial year has started, This is the reason, that you should always trust a CA in Durgapur, who has a proven track record of providing his or her clients with more return while filing taxes.
But, make sure in the process of getting more returns through claims, keep a check that you do not file false claims, as it will cause further scrutiny from the tax authorities.
Advance payment
If your liability exceeds the amount of 10,000 in a financial year, it is better to pay advance tax in installments. This will help you avoid interest on late payments, as suggested by a reputed income tax consultant in Durgapur.
Document Verification
When there is a document verification, make sure that you have all your documents that are related to your income, investments, and deductions ready. Also, be mindful that they are accurate and would not cause any issues when the verification is done. In this case, there is a CA in Durgapur, who can help you arrange all the accurate documents, and avoid any delays.
Resolving Back Taxes- How can you do so?
The process of resolving back taxes is not an easy task if it is not done by a professional. The reason is that whoever is doing the task, should have enough knowledge of the income tax rules and regulations of India.
Assessment and acknowledgement: If you have a CA in Durgapur hired they will review all your files, statements, financial books, and all tax-related documents to ensure that the curate amount of back taxes are determined.
Filing corrected tax returns: If your back taxes are a result of inaccurate reporting, then with the help of a chartered accountant in Durgapur, you can file revised returns, with the accurate statements.
Payment
When you have back taxes levied upon you, try to clear them fast, as it will further build up interest. You can pay the due amount through the online official portal of the tax department.
Consult a tax professional
The final advice would be connected with a reputed income tax consultant in Durgapur who has professional experience in handling back taxes, penalties, and any accusations of filing false claims.
Wrapping up
So back taxes are something that every taxpayer would have dealt with, and here you have got the ways to avoid and resolve tax issues. An expert CA in Durgapur will help and guide you while filing taxes accurately, and getting the maximum returns. If you are a resident of Durgapur or the neighboring cities, you can certainly connect with the best CA in Durgapur and get a wide range of tax, accountant, and record-keeping services.
