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5 ways to save yourself from late tax payment penalties

 We are legally and ethically obligated to pay our taxes. It is for the benefit of our own country. As a society, we all benefit from taxes since they help the nation grow and thrive. However, let's be honest here: Taxes are a pain! Because, after all, they're taking a bite out of our hard-earned cash. 





An even more horrible sensation is when you have to pay extra fines on your tax. That has to be one of the most unappealing sounds ever! Nevertheless, sanctions cause a significant portion of the public to incur more financial harm. We've put up a list of simple ideas for those of you who have trouble saving for taxes and often find yourself in the midst of additional late payment penalties. 


  1. Make a note of the deadlines!


It's not as complicated as it sounds! Many individuals fail to follow this advice, though. Punitive interest is imposed if you fail to pay your tax by the due date; interest varies under various situations but is normally 1% per month for nonpayment. Section 234A increases the penalty for submitting a return late. 


These fines are a major setback for whatever budgeting endeavors you may have had in mind. Fortunately, avoiding them is as simple as paying your taxes on time. Make sure you pay on time and pay attention to deadlines, and you'll be able to save money on your taxes in no time!


  1. You should never lie about your money.


It may seem to be a good idea to lower your tax bill by hiding your income, but it is not! It's impossible to keep anything like this a secret for long, and it will cost you dearly when it does. In terms of size, how large is this thing? Income tax authorities may impose a penalty of up to 200 percent of the amount of tax avoided or considered to have been evaded in such a case. 


The SIP mantra- Save, Invest Prosper- and experimenting with different plans and funds to grow your visible savings are better alternatives to taking such financial and legal risks. If you're looking for a simple and efficient Mutual Funds Investment App, look no further!


  1. Keep an Eye on the Prize!


Keep abreast of any and all changes to tax laws and regulations. Keeping an eye out for changes in government policies can ensure that you are always prepared for the consequences. When the GST Bill went into effect on July 1st of last year, it served as an example. 


People who keep up with the news and stay informed are better able to cope with the changes that are brought about as a result. You'll be a pro at Axe Tax if you adopt this mentality! In addition, it aids you in keeping track of upcoming events and deadlines. There is a deadline of July 31st for individuals who haven't yet submitted their tax returns.


  1. Co-operate with the Law Enforcement


As a result of non-compliance with tax authorities and their directives, there is a wide range of fines that may be imposed on individuals. You never know when the authorities may ask you a series of probing questions or issue a formal summons to appear in court. You may just be required to sign a few forms or provide explanations for any discrepancies that they find out about you. 


You might face a fine of up to Rs. 10,000 if you fail to comply with a notice of non-compliance. It is possible to be fined as much as Rs. 50,000 if you deliberately misrepresent your financial situation. So concealing the truth and ignoring government letters may not be the best way to save money.


  1. Modern technology may help you simplify your life!


It's mind-boggling how much easier it is to keep track of your money from the comfort of your own home. All of your account statements, transactions, and savings may be done on the go with the help of a fun Mutual Funds Investment App. Tax preparation may be made easier by taking advantage of this. 


With the aid of several applications and websites, it's possible to keep track of your financial records while also receiving notifications of crucial dates or policy changes. Keep track of your savings and investments with this fantastic software, which has an Axe Tax tool so you can monitor your tax savings and watch them develop.


We really hope that these hints and suggestions will assist you in avoiding tax fines in the future, therefore preventing you from losing even more of your hard-earned money. Taxes should be a piece of cake this year if you pay attention to the due dates and follow the rules. 

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