Tax To-Do list: All sources are good sources – report money from everywhere

It is a human tendency to hide what we have from others, to keep to ourselves and not share. However, it is very important for taxpayers to disclose the amount they receive from other sources than their primary source of income at the time of filing returns. The total tax payable by the taxpayers can be rightly calculated only if income from other sources in the form of rent, interest, royalty etc. is accounted for as part of total income and tax is paid on it. Any default in the reporting of income from other sources, can lead to penalties to the extent of 300% of the tax evaded.
Here is a checklist that ensures that you save a little extra with efficient tax planning as well as be a smart and informed taxpayer:

• Expand your investment portfolio
• Health is wealth – quite literally
• Claim what is rightfully yours
• Self assessment – a must do
• Deadlines matter: honor the due date to file your return
• If it’s exempt, why hide it?
• Non declaration of income earned from previous employer