Earning your money with strenuous hard work but not caring much about the filing your Income Tax returns. That’s a story of many of us. Working for a multinational company and feeling safe that our tax is already deducted (called as TDS) by the company and Form 16 is provided for every financial year. Too busy in your work to miss the deadline of filing ITR every time. Filing returns gives you jitters and you stay away from it. These are some of the most common reasons you would listen from people missing out on filing their income tax returns.
Is it important to file the returns? Yes, it is crucial that you file your ITR every year. Below are the benefits of filing the ITR on time and keeping your financial matters strong:
- It acts as your income proof: Ask for a loan for your house, vehicle or other reasons, take an insurance policy for a life cover and you would see the respective financial institutions asking you for an income proof. If you are salaried, bank statements, salary slips or your Form16 from the company shall work but for somebody self-employed in their own business, ITR is the most important and authentic document to prove your financial status while applying for a loan or buying a policy. It is a proof to your worth and the hard work you have put in to get to a stature you have.
- It makes you an innocent and responsible citizen: For all those who fall under the tax liability bracket, basically for people having a gross income of above 2.5 lacs per annum, filing income tax returns is mandatory. It also keeps you stay away from tax man’s scanner for not concealing your income. Hence, filing your ITR every year is a task you should finish responsibly every financial year.
- Get refunds on the tax paid: If extra tax has been deducted from your income, ITR helps you get the refund from Income Tax Department including the interest on the amount of refund.
You have little knowledge on tax filing?
There were days when the simplest reason of ignoring Income tax filing was lack of assistance and guidance. In the internet era that problem has been solved. Portals like Tax2win make ITR filing as simple as filling a simple form. For those who still need help, have multiple sources of income etc; can get personalized CA assistance from Tax2win at the most nominal rates.