In: Accounting
Give a definition and explain the following terms in relation to the administrative aspect of preparing an individual tax return
a.Tax Documentation: ITR filling process involves the requirements of various documents.Having all the documents required to file Income Tax return(ITR) can make this process easier. Tax documents help
Following are the documents that should be collected before filing of ITR
b. Tax Collection:
c.PAYG Witholding: Pay as you go (PAYG) is a withholding tax which requires you to pay incremental amounts of your business’s income to the ATO. These payments accumulate towards the expected end of year income tax liability. Before you file your ITR, it is important to finalise your PAYG installments. This will ensure that your income tax assessment takes into account the contributions you have paid throughout the year.
d. Assessment: Once the Taxpayer has filled his ITR, the income tax department will then analyse the details provided in ITR filed by taxpayer,this examination and analysis of details submitted by taxpayer is known as assessment.
e.Tax Obligation: It means any amount of tax owing by a person to tax collecting authority.Itis the duty of taxpayer to all the applicable taxes,interests and penalities he is liable for.