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Friday, 15 July 2016

Paying Tax a samasya no more

The biggest benefit of paying tax on your income is that it helps when you apply for a loan in future or when one applies for a visa.For any home loan, vehicle loan, car loan, etc, most lenders ask for proof of tax returns of the previous three years.Even if applying for a loan as a co-borrower, the return will serve as proof of your income. Similarly, if you are planning to travel abroad, tax returns are required while applying for a Visa. It is mandatory to file returns to claim tax refund or set off losses. For instance, if one has suffered losses from stock market transactions and one wants to carry it forward to the next year, one must file for a refund, even if the annual income is below the taxable limit.Even in case one has earned some money through freelance work and the company deducted TDS at 10 per cent. But since the income is lower than the taxable limit, one is entitled for a refund. For claiming this refund, one have to file a return. If a refund is due after adjustment of prepaid taxes, it is necessary to file the Income Tax Return to get the refund from the Income Tax Department.
Visas of foreign countries: Many countries want to know if you are financially sound before they issue you a visa and for this purpose they will rely on your income tax returns.Before granting the loan, banks want to know your financial capacity and your income details as shown by you in income tax returns.However, the benefits lost on non-filing of returns are more than the penal provisions imposed for non-filing.
For Accidental Claims in Third Party Insurance: This is also one of the benefits of filing the ITR every year. It is immaterial if the income barely touches or crosses the taxable limit.You may file ITR for yourself or your case of accidental death of any one member(s) during a road accident. At a court trial, insurance companies need the proof of income to arrive at the amount of accidental claim, and if any return is missing for the previous three years, this could lower the claim amount or even can become no claim because the court takes only ITR as evidence.Personal and financial benefits aside, filing IT returns also makes you a better citizen. Income tax is one of the sources of income for the Government, with which it funds infrastructure and welfare projects. It also is a barometer for progress, as rising income tax shows a corresponding growth in income.
So file your return and pay your tax using  e-filing platforms like H&R block and sit back in peace.

I’m taking the #TaxPledge to file IT returns with the easy Income Tax efiling option from H&R Block at BlogAdda.

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