CA Umesh Sharma
Keeping the conversation between Lord Krishna and Arjuna as the foundation, we will learn certain basic financial and tax matter. Let us try to get answers to our questions in a bit different and joyful manner. The character of Arjuna will be played by the common man or tax payer and the character of Lord Shri Krishna the Expert for giving solutions to all problems. Conversation is named as “KARNITI”.
Arjuna: Krishna, now due dates of return filing is approaching, taxpayer will file Income Tax Return for the year ended 31st March 2014. The taxpayers and Tax Experts, Chartered Accountants, etc. are in planning and working mode and business community is getting busy. Further business community is waiting for Budget 2014.
Lord Krishna: Yes Dear Arjuna, One should feel happy for the work done by him in life. He should not expect the fruit (output) from it. By filing correct Income Tax Return, taxpayer gets mental and financial peace. By paying tax, the taxpayer has served his Nation.
Arjuna: Very correctly said. A Man should not depend on the untrue hopes in his life. Krishan, Now please tell me in detail, when and in what situations a person feels guilty of less payment of Income Tax?
Lord Krishna: Listen Arjuna carefully, in this days of Kalyuga, “The one whose wrong doing gets exposed is named as dishonest, otherwise he is honest.” This misunderstanding has emerged in Modern social life. There are many instances when a Taxpayer feels guilty of not paying or less paying income tax. Few of them are given below:
Arjuna: Krishna, today you opened the eyes of the taxpayer. In the life, taxpayer faces many problems and earns money but for greed of little more money, he pays less tax and gets trapped.
Lord Krishna: My friends Arjuna, there are many more examples. As per Income Tax Act, on the undisclosed income, income tax @ 30% and penalty @ 30% with interest thereon can be imposed by the department. Everyone should take his own decisions by considering financial situation faced by them in his life. We should see what we are doing not of others. But in this Todays expensive world, the needs are ever increasing and rising corruption and costs, the honest person also falls in the greed of it. It is said that “Tax is a Fine on Honesty” it means the honest person have to pay more tax. This is true when, government do not have efficient, equal and transparent taxing system.
Arjuna: What Lesson a taxpayer should learn from this guilty felling of less payment of Income Tax?
Lord Krishna: Listen Arjuna, I will tell you one very interesting story for learning. Once a thief, while reading news in newspaper was laughing loudly. The other thief asked him, “why are you laughing”? Then thief replied, “Yesterday we has a theft of Rs. 25 Lakhs of a businessman and the said businessman had disclosed to Police of just Rs. 2 lakhs of theft. The other theft asked, but why? The first theft answered “Businessmen may have done this, due to FEAR of Income Tax Dept.”. Everyone should introspect on this story.
Dear Tax guru lovers your valuable comments please.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018