5 Things That Make Tax Filing Relatively Easy!

There is an age-old notion that tax planning involves a myriad of legal terms, processes, and paperwork that seeks to make our lives stressful. However, this is not the case. Tax planning is available to everyone including NRIs residing abroad in countries like the US.

The Government regularly brings new legislation and allowances that we need to keep updated all the time. Understanding the relevant rules and legislation, and how they may be applicable to one's circumstances ensures that you pay the exact amount and nothing more, is important. This way you can minimise the payable tax amount taking into account the tax exemptions, permissible tax reductions, rebates, tax exempted incomes and the like. There are a few things that can make tax filing relatively easy for an NRI. Read on to know more.

• Gather your documents: The process of filing your tax can seem daunting. The first wise step towards making the whole process easier is to begin by gathering your documents. The common documents you would require include income information that you can easily get from your employer, Form 16, , Form 16A issued by banks, Form 26AS, medical insurance receipt if any, details of  tax saving investments eligible for tax deductions and tax credit documents. Once you have collected all the documents, half your job is done.
  In case you need to request your family members in India to collect these papers from the respective authorities (for example, a home loan tax certificate from the lending institution) then make sure to do it well within time.

• Keep track of the dates: Every year new laws come up and keeping track of deadline for filing tax return is essential. Last minute hustle and bustle can cause lot of worry and can make things complicated. Starting your tax planning well before hand can make things lot easier especially if you are residing in the US and cannot attend to matters on urgent basis. Filing taxes on time can save your time and also avoids the need to pay penalty. Tax department keeps sending reminders through mails and SMS and with online facilities the whole process of filing tax is a child’s play.

• Determine your filing status and your deductibles: Different countries have different set of laws governing the tax collection. The payable tax amount varies depending upon your residential status.

• Don’t make mistakes that are easy to spot: It is so easy to go wrong on the amount whether you prepare a tax return on your own or take help from an advisor or do it online. Double checking and triple checking the amounts is essential. If you find something off about the bottom line figures, getting the help of a professional is also an ideal way. Paying an excess amount or paying a lesser amount and having to pay the penalty later is not only time consuming, but also frustrating.

Keeping track of deadline for filing tax return, submitting all the essential documents on time are some steps for easy tax filing. Since you are residing in the US, it will be a wise move to factor in these above points, so that your tax returns filing is made hassle free even when you aren’t physically present in India.

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Created on Nov 29th 2017 04:10. Viewed 508 times.

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