Before any topic to discussed/ read/ we need to understand it from the base with regards to the importance of Income Tax Return and also its benefits of it. Here we are going to know the benefits of paying Advance taxes and Income tax returns filing.
What is tax? Who imposed it? Who are liable to pay? When to pay? Who are going to benefit from it and what are the benefits for the one who is paying it.
To begin with Describe tax. A tax is a portion of your income that exceeds a specific threshold; this includes money from stocks, interest from fixed deposits, rent from tenants in houses or businesses, among other sources. Self-employed people, professionals, and businesspeople are all subject to tax. To encourage everyone to come and pay their taxes, taxes in India should be made very transparent and simple to grasp.
Who imposed It: – Government has formed a basic exemption limit any one who exceeds that falls in the category to pay tax, even though you don’t fall in to pay tax you can file tax as there are lots of advantages in doing so. By paying taxes not only the government but we can also enjoy the benefits of it. Taxes are levied by governments on their citizens to generate income to boost the economy of the country and raise the standard of living of its citizens.
Also government has made it easy for tax payers to not to pay tax in one go you can pay some amount as Advance tax and later the rest.
Now here paying Advance tax also have its own benefits which reduce the burden stress of paying tax at the deadline. Above all you also save interest, avoid penalty, notice from the government department and also it becomes easy for you to avail loan benefits for any personal use.
To make it easier the government has formed a payment schedule and payment percentages too which makes it all taxpayers easier to plan and pay taxes accordingly.
Added to this government has also categorize taxes in to two which are sub divided in to other categories, but the major two are direct tax and indirect tax.
Direct taxes are collected by the Central as well as the State government where we pay directly to them.
In case of Indirect tax these taxes are also paid to both central as well as state government but here you can shift your burden of paying to to another.
Both these taxes paid are very important for the country and its economy.
INCOME TAX RETURNS:- Income tax is a form filled and submitted to the Income-tax department by every individual with details of their annual income earned in the past financial year (From April 1st – 31st March ) Income tax is to be filed by any person whose annual income earning is above 2.5 Lacs but also income up to 5 lakh is tax-free.
But as per experts’ advice even if you don’t have tax liability ,you should file ITR on time as there are several benefits of the doing the same like you save interest, Avoid penalty, notice form the department and also applying for loan and visa approval becomes easy, it also acts as a legal document. So too enjoy so much benefits from an ITR filing It is a responsible of every individual to file their ITR returns for the betterment of society before time/or on time.
TAX REFUND AND LOSSES CARRY FORWARDS ARE ALSO AN ADVANTAGE FOR ALL.