One of the most important parts of living in a country is paying taxes. Taxes are referred to as an individual’s contribution to the country. The government uses the money collected from taxes into making and maintaining public welfare facilities for the people of our country. Every working in the visual that lives in a particular country have to pay a certain amount of their salary as income tax. Not choosing to pay the income tax and not disclosing the correct amount of one’s income in front of this state or the country’s government can be considered a punishable offence.
The income tax system in India
This system persists in almost every country as well as in India. In India, all the individuals who are above the salary limit of 2.5 lacs per annum pay a prescribed amount of money as income tax to the country. This tax system can be considered as a form of direct tax that people pay. Moreover, no person who lies above the minimum tax bracket of 2.5 lacs per annum can be exempted from this. The percentage amount of the salary which has to be submitted to the state in the form of income tax is prescribed by the Central Government of India.
A very closely related concept to income tax return filing in india (ITR). It discloses a person’s income and assets such as house property, business, profession, and capital earnings. So do the income tax department of India. It also contains the amount that the person has paid as tax to the government for the following year from the 1st of April to the 31st of March of the next year.
Benefits of regular tax returns filing in India
Duly filing the ITR can have many benefits.
- Avoid unnecessary penalties: if you submit your income tax returns on time, you are considered a law-abiding citizen. As a result, you can be saved from various penalties for people who do not file their income tax returns.
- Easy bank loans: the application process for a loan also consist of checking the income tax returns. If a person files their income tax returns on time, then their approval process becomes much easier. On the other hand, people who do not file their income tax returns on time rather face problems file getting a bank loan from any centrally recognize bank as they are perceived not to have a great financial record.
- Faster visa approval: Regular and timely filing of income tax returns can also help a person get their visa approved sooner than others. Especially when it comes to applying for a visa for developed countered like the United States of America m The United Kingdom, Canada, and Australia, the embassies of these companies ask for income tax returns before approving the visa for Indian citizens.
Filling income tax returns on time is a sign of a responsible citizen. However, to avoid getting into unnecessary troubles, it is advised to do the needful regularly.