1. It is often said that the Income Tax Act has created more "criminals" than any other law, as even honest and upright citizens could be underpaying their taxes, unwittingly and unknowingly.
2. Avoiding becoming an "innocent criminal" is possible if we are aware of where we are going wrong in our taxation, hence mentioning a few for benefit of readers:-
a) Ignoring income from investment made in the name of spouse and kids.
b) When terminating a life insurance policy before three years.
c) Not including interest income of investments with cumulative option in tax return.
d) When selling a house bought on loan within five years.
e) Both spouses claiming tax benefit on same expenses.
f) Availing double basic exemption due to job change in a single year.
g) Withdrawing from Employees' Provident Fund within five years of joining a company.
h) Not factoring in income from other sources.
i) Not making Section 80C investments on time.
j) Not submitting relevant forms to avoid Tax Deduction at Source.
k) Receiving gifts and cash from "unrelated" persons.
l) Not paying heed to wealth tax provisions on more than one house.
m) Not including ornaments in wealth tax provisions.
2. Avoiding becoming an "innocent criminal" is possible if we are aware of where we are going wrong in our taxation, hence mentioning a few for benefit of readers:-
a) Ignoring income from investment made in the name of spouse and kids.
b) When terminating a life insurance policy before three years.
c) Not including interest income of investments with cumulative option in tax return.
d) When selling a house bought on loan within five years.
e) Both spouses claiming tax benefit on same expenses.
f) Availing double basic exemption due to job change in a single year.
g) Withdrawing from Employees' Provident Fund within five years of joining a company.
h) Not factoring in income from other sources.
i) Not making Section 80C investments on time.
j) Not submitting relevant forms to avoid Tax Deduction at Source.
k) Receiving gifts and cash from "unrelated" persons.
l) Not paying heed to wealth tax provisions on more than one house.
m) Not including ornaments in wealth tax provisions.