CA Umesh Sharma
Arjuna (Fictional Character): Krishna, on 4th April, 2015 “Hanuman” Jayanti will be celebrated. So, if correlation of Hanumanji Character with Taxpayer and taxation laws if made, for learning, then who enjoyable it will be. Readers, please take it in a knowledgeable way only, does not take it otherwise, purpose of this is only for sharing and spearing knowledge.
Krishna (Fictional Character): Arjuna, Hanumanji has been bestowed with a variety of names such as Ram Bhakt, Pawan Putra, Anjani Putra, Maruti, etc. On the 1st of April the new financial year will begin. On this auspicious occasion of Hanuman Jayanti if one learns the principles of Hanumanji and changes are made in life and in following the tax laws then progress is going to happen in all aspects of life of a Taxpayer.
Arjuna: Krishna, What should the Taxpayer learn from Lord Hanuman?
Krishna: Arjuna, let’s correlate Hanumanji’s Qualities that a Taxpayer should possess and act in coming Financial Year 2015-16:
1) Obedience: Taxpayer should follow the tax laws like; Lord Hanuman always followed laws set by Lord Rama. He was true obedient follower of Laws. Never broke laws i.e., words of Lord Rama. Nowadays it becomes difficult for many Taxpayers to follow the tax law. But if the Taxpayer is determined then they can follow all the laws. For e.g. a) Payment of Tax and Filing of Return of Advance Tax, TDS, VAT, Profession Tax, etc. before their respective due dates. b) As per Companies Act 2013, taxpayers have to repay loans and Deposits other than taken from Directors, before 31st March 2015. Hence taxpayer should be obedient follower of laws.
2) Knowledgeability: Hanumanji had knowledge hence called “gyan gun sagar”. Taxpayer should first understand and then follow the laws. Taxpayer should know the major amendments made in Central and State Budget of 2015 and should make preparation for the upcoming Financial Years. For e. g. Service Tax will be leviable @ 14% from 12%, Excise will be charged @ 12.5% from 12.36% from the enactment of the bill. New provision of Income tax act, etc.
3) Planning: Hanumanji had made planning for a very difficult job of searching for Seeta maa and came back from Lanka by escaping from clutches of Ravana, likewise the taxpayer should start planning before the commencement of the New Financial Year. Likewise Businessmen should start using their new Books of accounts from 1st April onwards. Business should be expanded according to your strength and Targets of profit and loss should be set in the New Year. That means, Taxpayer should plan properly after doing an appropriate study of all the business laws. Thus tax payer will be able to search and achieve his target in business and escape from clutches of penalties or losses.
4) Fight for Justice: If department is levying tax liability which is not as per law, then taxpayer should make an appeal and should fight for Justice. E.g. Late refund given under VAT Laws, VAT, interest and penalty levied on the basis of J1 and J2 mismatches. Thus, the Taxpayer should fight against injustice just like Hanumanji fought against all odds. Strength of knowledge of law, will lead tax payer in this fight against injustice.
5) Being in Limits: Hanumanji had stayed in his Limits i.e. always with the orders of Rama, likewise Taxpayer should make transaction within the boundaries of provisions of Laws. According to the provision of New Budget from 1st June, 2015 restriction is made on cash transaction above Rs. 20,000 in case of immovable property. 100% Penalty is levied if Transaction related to Immovable Property is made in cash exceeding Rs. 20,000. Taxpayer should make transaction in Immovable Property as per the prescribed provisions. The taxpayer has to get registration under VAT if Turnover exceeds Rs. 10 lakh and he has to get registration under Service Tax if Service provided exceeds Rs. 9 lakhs. These are various limits prescribed by the different business laws. Tax payer should stay within limits of laws.
6) Intelligence: Taxpayer can save Money only if he works with Intelligence in his Business. As provided by Government, taxpayer can avail deduction under section 80C, 80CCC, 80CCD of Rs.1.5 lakh. Also, he can save a) by making Investment in Pension Scheme and availing additional deduction of Rs. 50,000. b) by Investing in Sukanya Samruddhi Scheme as interest received is tax free and withdrawal is also tax free. As Hanumanji became everyone’s cherished because of intelligence, taxpayer should also cherish the saving of taxes by staying in the frame of Law within the time frame prescribed by laws.
Please note that these are some few qualities of Hanuman discussed here. Hanumanji being immortal possessed lots of qualities. Sharing of knowledge makes one immortal. Hence everyone should share knowledge for betterment of others life.
Arjuna: Krishna, What should the Taxpayer learn from this?
Krishna: Arjuna, Jamuvant helped Hanumanji realize his own strength and as a result Hanumanji flied to Lanka; same is the situation of the Taxpayer. There are various provisions in Laws that taxpayer has to be reminded of. Some taxpayers pretend that they never knew of it and can’t find the “Sanjivani” of Tax. Implying that taxpayers should find the “Sanjivani” by pursuing their Knowledge. Many read “Hanuman Chalisa” every day or in case of crises is good, but to follow the teaching of Hanmanji in everyday life is the need of today. Everyone should learn from the above discussion and should not take it otherwise, its just for sharing of knowledge.
Dear Karneeti lovers and your comments and blessings are always welcome.