This is a time for filing income tax returns and most of the people regard this task as a burden. But filing income tax returns will help you account for certain income that may not be subjected to tax-stock investment of over one year. Every year income tax department take steps and measures to encourage more people to file their income tax returns. Presently, a meagre 1 per cent of India’s population files income tax returns. According to reports out of 29 crore people eligible for paying tax,merely 6 crore people paid tax.
According to income tax laws, filing income tax return is mandatory for an individual who earns above the basic exemption limit. Also a person who qualifies as ordinary resident in India under income tax laws and fulfils any of the following two conditions must file his income tax return.
- One he holds an asset either as a beneficial owner or otherwise including a financial interest in any entity located outside India, or has signing authority in any account located outside India.
- Two, he is a beneficiary of an asset, including any financial interest, in any entity located outside India.
Here are few things that a taxpayer need to know about the entire process and what benefits early filing of income tax returns they will get.
- Filing of income tax returns is compulsory under Income Tax Act.Early filing of taxes brings along with it a number of perks and benefits for taxpayers.For instance, if you have applied for a housing or education loan or are seeking registration of a immovable property, your papers will be cleared faster.
- From this year onwards, it is mandatory to provide the 12-digit Aadhar number.If the assessee does not have an Aadhar card, then he needs to provide the enrollment ID.Also an individual needs to disclose the cash deposited during demonetisation if the total number was more than Rs 2 lakh.
- Your visa application will also stand eligible to get faster clearance if you have been early bird and an honest taxpayer.
- Bank will refuse to issue you a credit card if they found out that you are not a regular taxpayer.
- A dully filled income tax returns documents can serve your requirements of showing monthly or annual income.
- By filing income tax regularly you become contributor to national income of the country.
- The simplified form that majority of taxpayers will be required to fill and submit with the tax authorities is income tax return (ITR) -1 SAHAJ form.ITR forms ITR-2,ITR-2,ITR-2A, and ITR-3 have been merged into single ITR-2.ITR-4 and ITR-4S(Sugam) have been renumbered as ITR-3 and ITR-4(Sugam).
For any information related to ITR forms