I know you don’t want to hear about income tax returns now, as we have been going crazy with these lately. But many of you have got extensions done, so we have another two weeks. I’ve realized, this wouldn’t have happened if:
- I had known/remembered the last date! – Got prepared earlier.
- If I had followed these instructions given below.
Maintain details throughout the year:
So, here are a few tips, on how to be better prepared.. Maintain this throughout the year. This means that you invest about twenty minutes daily to maintaining your expenses etc of the day in your household account book.
You can keep all data needed, in a shape that can be uploaded. So, what do they need?
1. Maintain your Household management accounts daily:
As you all may have imagined, I write down all expenses and income in a ‘hisab ki kitab’, or household account book. So, that makes things much easier. So, this would mean to maintain all accounts on a daily basis.
2. Monthly uploading of data to personal chart:
All you need is to note the monthly income and expenses, and keep separate data of gas, electricity, mobile phone, security, internet etc. I’ve found this useful:
3. Details of new assets:
So, I guess the mare I bought would be included here, or if one buys a new car, house, land or flat. All this the details would be included here. Especially the taxes paid for these during the sale/purchase.
4. Bank statement:
You will need the bank statement from your bank (or banks.) Get them from July 1st of last year till June 30th of current year. If you tell them it is for income tax, they will do it.
This you can easily get from the bank or get online. It would be shared, along with the rest of your data chart.
5. Charity/zakat/sadqa are tax deductible:
The record of all your charity contributions need to be added to your accounts. This amount shall be deducted from your income tax.
My apologies to my contributes, I shall improve my receipt system very soon. However, you have record of sending for contributions, everything is by name.
6. Upload to website on time:
If you are competent enough then do it yourself. Otherwise, hire someone to this for you.
Special note to homemakers:
You are in charge of a lot of the income and expenses in your family. So, if you maintain the accounts properly, it would be a great help to your husband when he has to compile these at the end of the year.
In my parents’ case, my mother kept all accounts and records of any assets. The papers were all handled and kept in her care. She was excellent in Math, and was amazing with her mental math as she is now. So, my father felt comfortable in leaving everything to her.
This does wonders for a relationship. It also makes your husband trust you more. Many couples divide parts of the expenses and their records. For instance, I did the home stuff, while my husband kept the outside stuff. He was also brilliant with numbers, so I left everything to him.
Every couple needs to handle accounts together. One partner shouldn’t leave it all to the other. It is best to keep it a combined effort.
Benefits of being a tax filer:
You will reap many benefits of being a tax filer at every step, in Pakistan or anywhere in the world. This is especially so, when buying or selling assets. May Allah bless Faizan and his father from whom I had bought my latest car, four years ago. They quickly helped me to become a filer through the man who does it for their Honda motorcycles’ shop in Aab Para and another in Bara Kahu. Through them, I got Mr. Liaqat to do the dirty work for me, I mean the cleaning work for me. I always wanted to become a filer, but didn’t know how, as my husband used to do all this in his lifetime.
So, I’ve realized that a homemaker can make things very easy for her husband, by keeping all this data neat and tidy. Anyhow, by now I’ve become pretty good at it, and am qualified to write down the above.
Best of luck with your income tax! Stay blessed and protected. ?