Karniti Part-28: Colors of Income Tax and Taxpayers Holi

Arjuna (Fictional Character): Krishna on this day of March by making bonfire chilled winters comes to an end. Further in this month being an last month for the financial year 2013-14, taxpayers will have to blend with all colors of transactions. Krishna, elaborate joyfully the scenario of Holi among the Tax payer and the Income Tax Department.

Krishna (Fictional Character): Holi is the festival of colours and is celebrated all over the world with great enthusiasm and in a cheerful way. It is a carnival of colour where People throw colours on each other and celebrate. Delicious sweets like "Shrikand", "Puranpoli" etc. are prepared in every house. People forget the rivalry with others and comes together to celebrate this festival with love.

Arjuna: Holi comes every year, Colors of holi fade away after sometime but one never forgets the message they convey. The most popular colour of holi is "pink" or "Gulal". Krishna what is the significance of this colour?

Krishna: Oh! Arjuna you have made a great combination of Colours and taxpayers. Pink is the favorite colour of the people and similarly the Tax payers favorite things are the deductions and exemptions of income tax like basic exemption of tax to individuals up to Rs. 2 Lakhs, Agricultural income is exempt, interest on housing loan is exempt up to Rs. 1.5 Lakhs, one can also avail deductions under Section 80 and under section 10. Every taxpayer should avail these benefits.

Arjuna: Yes Krishna, now tell me the significance of "Green Color".

Krishna: Green is the colour of prosperity, Goodness and well being. Holi brings together those people who were left behind, in the race of life. In income tax Green colour means the coming back of money of the taxpayer in the form of refund. Income tax department repays the refund along with the interest and taxpayer can conclude that the return filed is correct. So these provisions bring peace to the taxpayer.

Arjuna: What about "Yellow Color"?

Krishna: Yellow is the colour of happiness, mind and intellect. Taxpayers should have knowledge about income tax. Taxpayer should not blindly listen to the tax consultant but rather try to understand some basic things about taxes. Tax payers should keep themselves updated about tax related information through newspaper, internet etc. Taxpayers may also visit www.incometaxindia.gov.in website and can get the status of refunds, tax deducted at source from their own account.

Arjuna: What you have to say for "Red Colour" Krishna?

Krishna: Red color signifies danger, fear and difficulty. As in Holi people shout with others name. Similarly Income Tax Department shouts with the name of the taxpayers i.e. if taxpayers do not pay tax, pay less tax or fail to pay Advance tax in time then the department issues the notices in the name of taxpayer. As in Holi people who try to hide themselves or resist playing color are the one who are colored the most. Similarly in Income tax also, the taxpayer who does not pay tax or tries to hide his income, Income Tax Department catch hold and showers with extra color on him i.e. penalties and interest are levied.

Arjuna: This means taxpayers should not hide themselves otherwise they will be showered with extra color. Krishna now tell me, what does "Black Color" signifies?

Krishna: Black is the colour of darkness, rejection, stress etc. As in Holi the one who tries to be over smart, others torn his cloth and it becomes difficult for him to come in front of others. Similarly in Income Tax, if income tax department gets information of taxpayers unaccounted money or undisclosed money or about black money then department make survey, Raid on the taxpayer. In this Income Tax Department raids at business place, house, godown etc. and seizes unaccounted wealth of the taxpayer. Income Tax department makes addition on the gross profit of the taxpayer and levies tax on it. In this situation taxpayer's wealth, name goes and it also becomes difficult for him to come in front of others. As black color is applied on the face of thief if he caught, in above case taxpayer also falls in such situation. In Holi, if warmish color is applied then it takes time to remove it same is the case of taxpayer if raid occurs.

Arjuna: Sevens colors of rainbow are there in our life, on this occasion we play with these colors. In Holi Bad things were destroyed. Every color teaches us some or something. From these colors, which color taxpayer should use?

Krishna: Arjuna, One should forget discrimination with others and should come together and play colors joyfully. In Income tax, taxpayer should disclose his true income and accordingly should pay tax and file return. White color signifies purity, cleanliness and truth. Taxpayer looks good in white color only. But due to black money it is difficult to find white taxpayer. In Holi every one should play with "Pitchkari", "Balloons". But while playing care should be taken. Similarly in Income Tax everyone should pay his taxes regularly and follow the tax laws. Taxpayers should file his income tax return, TDS returns, wealth tax returns, etc. regularly. So that he can live his life peacefully.