In: Accounting
1. Tax agents have a responsibility that their clients’ returns are prepare within the established timelines. What role do timelines have in satisfying client expectations and how would you develop a timeline to full your obligations? (120-150 words) 5 marks
Tax Agents are only the person who is suppose to file your Income Tax Return before the last date of Return runs., for which they are allow to charge fees for preparing your return.It is very important responsibility for both, tax agent as well as an individual to provide all necessary documents, details of the incomes/ earnings/ hose hold property/ capital gain/ other income source/ investments/ gifts of any land or property received during the year/ any type of earnings- income during the current Financial Year.If there is individual return is filed or jointly filing the return, House income should be provided to Tax Agent.
All necessary record to provide details for the return purpose should keep together to avoid rush and mistakes at last moment. If last year return is not filed, one must contact to their tax agent to avoid penalty and for the current year's return before the deadline.
One should keep in mind the timeline so that if there is last year's Refund is there if one has not received, that can be shown in the current year return. If there is delay in receiving the refund government pays the interest on refund for delaying refund.
Losses from capital gain, house property, income from other sources of last year can carry forward from last to current year.
If one does not file return and tax liability is there, then there will be charge of interest on tax dues.
Delaying in filing return within due date of return, one may levy penalties for non-filing income tax return by Tax Authority. These are the reasons why timelines are very important for the Tax Agent and Taxpayer to file the return.