I made a costly mistake in the 2021-22 financial year. I did certain things assuming that a specific tax rule will lower my tax liability. My accountant who is preparing my tax return is telling me that my assumption was wrong. Basically I am looking at a big tax bill this year (along with interest too, since I didn’t account for this while paying advance tax)!
Lesson learnt: do not assume you’re right and cross-check with experts. If you expect to save a lakh rupees in taxes, it’s prudent to spend one or two thousands in validating the assumptions to be doubly sure.
I still remember the tax exemption mistakes I did 5 years when I did them for the first time. I think every year after that as well I did some smaller mistakes, but I feel bette that I atleast have an understanding rather that completely depending on CA, the thing is given my income is less most ca won't ready to discuss before filling and will do by themselves
ReplyDeleteWhether we have an accountant to help us or not, learning and understanding the tax rules will always give us an advantage.
DeleteGood on you for continuously learning and improving!