WHAT IS ITR AND HOW IT HELPS IN DEVELOPMENT OF COUNTRY
WHAT IS ITR AND HOW IT HELPS IN DEVELOPMENT OF COUNTRY
WHAT IS INCOME TAX RETURN
An Income Tax return is an Income statement of the assessee which reports income, expenses, and other pertinent tax information and filed through different types of forms filed by the Tax Authority. Tax returns make it easy to Assess to calculate their tax liability, schedule tax payments, and request refunds for the overpayment of taxes.
HOW IT HELPS IN DEVELOPMENT OF COUNTRY
Tax is one of the revenue generation sources of the Government, and the revenue collected by them through this is used for the infrastructure development and overall development of the company. Thus by paying taxes on their income individuals can help in the global development of the Country.
WHAT ARE THE BENEFITS OF FILING ITR
1. Easy Loan Approval
If a person wants to take vehicle loan (2-wheeler or 4-wheeler), House Loan, etc All major banks demand Filed copy of Income-tax return estimate credit rating and trustworthiness of repayment through the ITR of the Customers
2. Claim Tax Refund
If you have paid excess tax to the Income Tax Department, you will have to file an Income Tax Return to claim the refund.
3. Income & Address Proof
Income Tax Return can be treated as proof of your Income and Address.
4. Quick Visa Processing
At the time of visa application. Most embassies & consulates require you to furnish copies of your tax returns for the past couple of years.
5. Carry Forward Your Losses
If you have losses in a certain period, then you will be able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years.
6. Avoid Penalty
If you are required to file your tax returns but didn’t, then the tax officer deserves the right to impose a penalty as prescribed
WHICH FORM SHOULD BE FILED BY INDIVIDUAL FOR FILING ITR
ITR-1- For Individuals having Income from Salaries, one house property, other sources (Interest, etc.) and having total income up to Rs.50 lakh
Return Form ITR - 1 (SAHAJ) can be used by an individual whose total income includes:
(1) Income from salary/pension; or
(2) Income from one house property (excluding cases where loss is brought forward from previous years); or
(3) Income from other sources (excluding winnings from lottery and income from racehorses, income taxable under section 115BBDA, or Income of nature referred to in section 115BBE).
Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this return form can be used only when such income falls in any of the above categories
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