Income tax demand a contingent liability Yes, the interest on income tax demand is a contingent liability because it is a potential obligation that arises from an event that has already occurred, which is the assessment of additional income tax. However, the final amount of interest payable may depend on various factors, such as the… Read More »
What if I do not pay my income tax If you do not pay your income tax, it will be considered as taxes evasion, which is a serious offense under the Income Tax Act in India. If the Income Tax Department finds out about the non-payment of tax, it can take various legal actions against… Read More »
Filing income tax returns Filing income tax returns is mandatory for several reasons: Legal Requirement The law mandates individuals and entities to file income tax returns within the specified due dates. Failure to comply with this requirement may result in penalties and legal consequences. Income Assessment Filing tax return allows the tax authorities to… Read More »
Tax Avoidance vs Tax Evasion Tax avoidance vs Tax evasion: Tax avoidance is a legal means of reducing one’s tax liability by using lawful methods to take advantage of available tax incentives or deductions. Tax evasion, on the other hand, is an illegal act of intentionally not reporting or under-reporting income, falsely claiming tax deductions,… Read More »