The due date of Income tax return filing for Individuals i.e 31st of July is fast approaching. It’s time to file your return and pay your taxes. Tax payers generally take filing of return as a burden or an additional compliance put on by the government. In fact, Income Tax Return is just a Statement of Income earned from various sources of income such as Salary, House Property, Capital Gains, Business Profession, and Other Sources.
Every Individual whose Total income exceeds the maximum exemption limit is obligated to file his/her Income tax return. But, generally people are under the impression that there is no need to file the return and they think it’s logical not to disclose the income and avoid paying taxes altogether. Salaried Individuals on the other hand are under the impression that employer has deducted the TDS and they are not required to file the return.
In this article we would like to drag your attention to 10 reasons why you should file your Income Tax return and that too within due date.
- Strengthens your financial credibility– Filing of return helps you to create a strong financial background and assists you to be in the good books of financial institutions.
- Prevention of Unnecessary attraction of Interest-You need to Pay Interest on Income tax due if the return is not filed within due date. Interest is paid at the rate of 1 % for every month after the due date till the date of filing of return.
- Assists in Hassle free Carry forward of losses- Losses such as “Business Loss” and “Capital Loss” incurred by Individuals is possible to be carried forward only If Income tax return is filed within Due date.
- Helps you to avail Loans-Before Granting any Loan Banks check the Individual’s financial Capacity and details of Income earned which is shown by an Individual in the Income Tax return.
- Assists you in Visa Processing–Foreign Countries rely on an Individual’s Income Tax return to know if they are financially capable or not before Granting Visas.
- Saves you from Penalty & Prosecution– Non Filing of return within one year from the end of the relevant FY levies penalty of Rs 5000 and there are also provisions under the law for prosecution on wilful failure to file tax return.
- Helps you to Claim Refund –You can claim refund of taxes deducted or paid in excess of their tax liability by filing your Income Tax return.
- Helps you to Secure Tenders–Income tax return helps Professionals and business organisations to become eligible to secure certain tenders.
- Enables you to revise return– An Individual is entitled to revise the return of income originally filed by him to make changes or additions as found necessary by him if the return is filed within due date.
- Net worth Certification- ITR filing receipts and copies help you in establishing your net worth. This has become even more important now since individuals whose total income exceeds Rs 50 Lakhs have to make certain disclosures in their ITR from this Assessment Year onwards.
So, what are you waiting for? There are 10 reasons to file your returns and one choice – Visit us at MakeYourTax-Cloud based Return filing application and file your returns before due date.