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Why should people file income tax return on time?

4:18 AM Dhanur Chauhan 0 Comments

The tax, irrespective of its nature, is the main source of income for any country. The money, which the government needs to use for a salary of the employees, welfare activities and long-term plans for the progress of land, comes from this source. However, there are direct taxes as well as indirect taxes, and their slabs vary as per the declaration from the government.

The people are supposed to file income tax returns every year to disclose their income to the Government and pay tax amount as per the rate they qualify for. For many people tax is a burden and they are looking for ways to evade it.

Not many know that filing returns can actually help in gaining certain incomes which are not subjected to tax such as stock investments over one year and other short-term investments.

Then there is a segment of people who are ignorant of the service tax return filing procedures which is why they evade tax. There are few people who believe that tax was paid at source via TDS, but still, you compulsorily need to file a return if you fall above the exemption limit.

Every year the Government takes the initiative to make the process of filing returns easier so that they can encourage more people to file income tax returns annually. Some of these initiatives consist of:
  1. Simplified forms for filing return
  2. Paperless filing of returns with the help of online GST portal
  3. Pre-filled tax return forms
Who all need to file the income tax return of GST:
  1. If your income is above the basic exemption limit decided by Government, you are required to file a tax return by the law.
  2. Filing a tax return is mandatory for people who wish to claim a refund or carry forward a loss.
  3. One needs to file a tax return in case of long-term capital gains from the equities.
  4. Filing tax returns also helps in speeding up the process of loans and property registration.
  5. Filing tax returns is mandatory for getting a Visa.
  6. In the 2017 budget, it was announced that the taxpayer would have to bear a fee for late filing of the returns.
Here’s a look at why should people file income tax return:
  1. Simple forms-The authorities have introduced the one-page ITR form-1 which is meant for people with income up to 50 lakhs which include assets and properties. From this year, it would be mandatory to offer the 12 digit Aadhar number.
  2. Eligibility-As per Income tax laws, it is mandatory for an individual to file income tax returns if he earns above the basic exemption limit.
  3. Consequences-The consequences of evading tax can be dire. The person will have to pay the penalty, and a fee has been proposed for late filing of the tax return.
Thus it is recommended to file the income tax returns on time as it is in benefit of both country and taxpayer.