It’s the time of the year , where each salaried person has to fulfill his required duty to the Government, being filing his income tax returns.
Income tax filing is a process by which every salaried professional or businessman have to declare to the government , the total tax he has paid in the previous financial year, any other undeclared income, fixed deposit interests( which is also considered as income) and so forth.
PAN Card being the central linking key, it tracks all our incomes from various sources including our company, bank interests, freelance income etc . This information is available in a report called “Form 16” that summarizes the previous financial year’s tax paid summary
This process of filing tax returns is a mandatory process, failing by which can lead to excessive fines and penalties proposed by the Income Tax Department. Filing IT returns on the other hand however provides numerous benefits for any individual. They are as follows:
1. A person who has paid his income taxes correctly and filed his returns shows him as an exemplary citizen of the country. It reflects his honesty, straightforwardness and taking care of his responsibility on behalf of the nation.
2. Filing IT returns in a way indicates his stability, a steady influx of regular income and thereby making him a trustworthy individual. So the next time he steps into a bank with a loan request, he’d be immediately processed and given security clearance for the loan ( if the amount is within the eligibility amount).
3. A VISA guarantee : You may have finally set your eyes on a fancy tourism destination like Dubai , UK or even the United states. The first document you have to submit to request a VISA is your IT Returns. This gives a guarantee to the foreign government that you are indeed a citizen , and have no outstanding money that you owe to the government in terms of unpaid taxes. This also reduces your flight risk factor and makes it easy for them to trust and approve your visa status.
4. Career Change : You may have moved to a different company to pursue a new career. Even the new company may require your IT returns to compare the previous salary earned, current tax brackets etc.
5. Most important however is refund of excessive tax : Your employer may have deducted more tax than what should have been actually required. Filing tax returns will highlight the extra tax you may have paid and you’ll be receiving the tax refund within months directly to your bank account
The last date for filing the IT returns for the financial year 2015-2016 is July 31′ 2016
Dont wait till the end and file it now .
Process of filing IT returns is simple. All you have to do is download your Form 16 from your company payroll website , and get it filed.