How to Make Sure You Don’t Miss Paying Taxes
Updated On March 27, 2023 | by Joseph Williams
Taxes are important for the country’s economy and for your personal finance or the finance of your business. If you don’t pay your taxes on time there may be penalties imposed on you in accordance with 234a, 234b, or 234c of the income tax act. So let’s take a quick look at some of the steps you can take so that you stay punctual with the payment of taxes:
Pay Quarterly Estimated Taxes
If you’re self-employed or have other sources of income that aren’t subject to withholding (such as freelance work), then you’ll need to file estimated taxes every quarter. Estimated taxes are due on April 15th, June 15th, September 15th, and January 15th of each year. The amount you’ll owe will depend on how much money you’ve made during that period. A tax professional can help make sure you’re paying enough so that you don
Track Your Income Each Month
One of the most essential aspects of staying on point with your taxes is keeping is reporting all of your income each year. You should be aware of every detail from what is the cca in salary to how much TDS are you paying. This is because you’re responsible for reporting all of your income, whether it’s reported to the Income-tax department or not. This includes income from self-employment, freelance work, interest and dividend income, rental property, and even alimony if you’re the payer.
Set Up a System for Tracking Your Expenses
If you have a business or rental property, you may be able to deduct certain expenses. This can include things like office rent and supplies, travel expenses, software subscriptions, and professional development while keeping a track of where your sales taxes go. Make sure you keep receipts throughout the year so you know what can be deducted come tax time.
Set Aside 30% of Your Income Every Month
This tip is especially useful for those who fall into the self-employed tax bracket. Once you know how much you’re making each month, it’s important to set aside the necessary amount each month so that you don’t have to scramble and come up with a hefty sum in one day. Even if you’re an employee, saving even a small amount each month can help offset any tax burdens that may come up during the year.
Include Tax Deductions in Your Monthly Budget
It’s also important to include any tax deductions that apply to your lifestyle. If you plan on buying a house later this year, then make sure to include mortgage interest, property taxes, and more in your budget.
Keep Track Of All Receipts And Tax Documents
Every year, many people wait until the last minute to start gathering their receipts and tax documents – only to realize they’ve misplaced them or thrown them away at some point throughout the year. To prevent this from happening to you, start keeping track of all receipts and tax documents as soon as you receive them.
You don’t need to save every single receipt for every purchase you make; just keep track of any important or itemized receipts that will help lower your tax burden at the end of the year. If possible, create a spreadsheet