The Part ONE of my previous Blog on My FINANCIAL FUNDAS has been very well appreciated by many readers. THANK YOU from the bottom of my heart. Keep inspiring me .
Complying with INCOME TAX REGULATIONS is an important aspect, to be understood by all Doctors. Some tips are offered herewith.
Filing of ANNUAL Income-Tax RETURNS should be a priority task in the month of June – July .
When a Doctor’s yearly PROFESSIONAL FEES INCOME is under 20 LAKHS , such a Doctor can avoid keeping meticulous Account Books, by adopting Section 44ADA and paying the income tax applicable on 50 % of such Annual Fees collections. This applies to mainly – Private Clinics / Small Nursing Homes. You will then not need to get your Accounts AUDITED , if this section is accepted by you and applied by your CA
It is mandatory to maintain a DAILY CASH REGISTER ( Form 3C ) to register the daily FEES INCOME collections that you receive in Cash / other modes like PAYTM etc.
Pay your ADVANCE TAX in three portions around the 12th date of June, September and December. Any remaining Tax Dues can be paid at the time of IT RETURN FILING.
INVEST TIMELY in any of the OPTIONS meant for SECTION 80 C Benefits of up-to 1.5 LAKHS , and this is best done in the first quarter of the Financial Year ( April to June ) . The MONEY so invested , reduces your Gross Taxable Income by an equivalent AMOUNT and also helps you to accumulate precious SAVINGS for the future.
Your PPF ACCOUNT in any good PSU BANK is the best option under 80 C category, especially if you are below the age of 50 years. There are some unique advantages of PPF deposits, if done on a regular basis, year after year, from an early age ( say 20 – 30 years )
In the recent years, ONLINE ASSESSMENT of your IT RETURNS have become totally FACELESS , therefore the Assessee has to adopt TAX COMPLIANT BEHAVIOR , as highlighted above, BECAUSE any under-table settlement ( = mandavali ) has become a thing of the past.
If you have been filing INCOME TAX RETURNS meticulously , you will be eligible for all types of BANK LOANS to build your Capital Assets as an individual.
Always be vigilant about your CIBIL SCORE , which is a modern – day reflection of your CREDIT WORTHINESS, by paying all types of BILLS, DUES, and EMIs, wherever applicable on you.
Do TWO things simultaneously in life.
Your earned revenues from Professional FEES and other income sources need to be put into these baskets of SAVINGS and LUXURIES of life.
LIFE COMES only ONCE and one has to live happily in the present times, with an ample quota of enjoyment and luxuries that are matching our basic aspirations and our status, especially if we also have a family to care for.
SAVINGS for the future is equally vital, to prepare for future challenges. One needs to have two strategies in this regard.
Keep sufficient funds in Savings Account, Fixed Deposits, Gold & Precious Metals and CASH at HOME . This is your EMERGENCY CONTINGENCY FUND that comes handy when you land in difficult times, in case of some emergency or any casualties that may strike , usually without a prior notice.
This is about LONG TERM SAVINGS and RETIREMENT FUNDS.
Long Term Savings are PPF , NPS , Long Tenure LIC POLICIES and Pension Plans. All of them should make a decent GIFT HAMPER for happy times in old age.
MANY MORE IDEAS and FUNDAS will continue to pour in your Whatsapp Kitty , with the passage of weeks. BYE BYE till then… Just save this number and my name in your mobile handset ……
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Dr. Dhananjay Shah
Ped. Practice of 40 years
FELLOW IAP 2006
Crusader @ IAP
Worthy Candidate for IAP PRESIDENT ELECT 2022