Income Tax: Why It's Better to Pay than to Flee

As usual, March is the time for us to assess our income tax every year.

Once upon a time, income tax assessment took a lot of work, leading many to skip this crucial task.

However, in today's time, assessing income tax has become increasingly convenient as we can fill out the e-filing form online.

So, let's no longer take lightly our responsibility as Malaysian citizens to estimate our income tax.

Many are hesitant to make their tax assessment, feeling that it's a hassle, but did you know that some of us end up worse off by not doing it?

This is because most employed people have already been paying income tax monthly through Scheduled Monthly Tax Deductions (PCB).

In reality, there are several reasons why we should assess our taxes, and one of the most important ones is that most of us are subject to Scheduled Monthly Tax Deductions (PCB).

However, PCB does not consider the deductions, exemptions, and rebates provided by the government to allow us to reduce the amount of tax payable.

If we do not estimate our taxes, we may end up paying more than we should and not receiving the tax refunds we are entitled to.

This tax refund can be used for various purposes, such as investing in building an emergency fund and paying off debts.

So, assess your income tax to minimize the tax you must pay and receive the refunds you deserve.

Moreover, as PCB increases with rising incomes, avoiding or delaying tax estimation will only be detrimental to us in the long run.

Do not evade tax assessment because the unpaid taxes will accumulate, and you may face penalties for this negligence.

Remember to keep all receipts for deductions, exemptions, and rebates claimed for at least 7 years.

And don't forget to use the surplus money, if any, for something that can help to strengthen your money position such as via investment or paying your debt.