Filing income tax returns is important in India for a number of reasons.
The primary purpose of income tax is to raise revenue for the government to fund its activities. By filing your tax return, you are fulfilling your legal obligation to pay taxes on your income.
To claim deductions and exemptions: Filing your tax return allows you to claim deductions and exemptions. This can reduce the amount of tax you owe.
There are a number of deductions and exemptions that you can claim on your income tax return. These can reduce the amount of tax you owe. Some common deductions and exemptions include:
Medical expenses
Education expenses
Donations to charity
Home loan interest
Life insurance premiums
If you have overpaid your taxes during the year, you can file a tax return to claim a refund. The amount of your refund will depend on how much you overpaid and the deductions and exemptions you claim.
To build your credit score: Filing your tax return on time and in full can help to improve your credit score. A good credit score can make it easier to get loans, credit cards, and other forms of credit in the future.
To get a job: Some employers require job applicants to provide proof of income tax filing. This is to ensure that the applicant is a responsible taxpayer and has a history of paying their taxes.
To get a visa: Some countries require visa applicants to provide proof of income tax filing. This is to ensure that the applicant has a stable source of income and is not likely to become a financial burden on the country.
Overall, filing income tax returns is an important part of being a responsible citizen and taxpayer in India. It has a number of benefits, both financial and non-financial.
If you are a resident of India and have earned income during the year, you are required to file an income tax return. The deadline for filing your tax return is usually the July 31. You can file your tax return online or by mail.
If you need help filing your tax return, you can hire a tax professional. Tax professionals can help you to determine if you are required to file a tax return, and they can help you to calculate your taxes and file your return.
(Viral Bhatt is the Founder of Money Mantra, a personal finance solutions firm)
