Tax Return Filing by Government Employees
The Government recently announced that tax return filing by government employees is mandatory specially those whose salary is taxable means tax is deducted on monthly basis from their salaries by their respective employers/ organizations.
The Govt employees earning taxable income are not required to pay any tax on such income as tax is deducted, at the time of payment, at source on their income/ salary.
For Government employees to file income tax returns will not only document the economy but it will also increase tax net and we as a compliant nation.
What Government employees should do to file their income tax returns
- First of all the government employees must collect their income details that is their salary income whether taxable or not. You can either demand Salary Slips, salary statement and certificate of tax collection/ deduction from their respective employers.
- Apart from their salary income they might have income from other sources like Profit on Debt (profit on bank accounts), rental income from property/ shops/office/ houses etc, capital gains from sale of shares, agricultural income or any other sources of income. So these incomes should also be considered before preparation or filing of Income tax return.
- Along with income tax return a taxpayer should also prepare and file wealth statement.
- I order to file wealth statement following information is required
- Detail of all assets both movable or immovable
- Detail of all liabilities
- Detail of personal expenses
- A wealth reconciliation statement containing opening wealth as well