Every year taxpayers file their income tax returns based on the earning during the previous financial year.
The number of taxpayers in Odisha has crossed one million as more and more people are showing interest to disclose their income as it provides several benefits.
The central government demonitized high-value currency notes of 500 and 1000 denominations about three years ago, as parts of its crackdown on black money.
While the government has improved better enforcement, it is also making things easy and educating people as taxpayers contribution is the most important and largest contribution to the government exchequer.
There are still a sizable number of people in this eastern state of 42 million who do not file their tax return for different reasons.
If someone is under non-taxable income bracket, he or she should also file income tax return as it provides several benefits including help banks to evaluate your detail when you apply for any loans.
India follows the April to March financial year and hence the process of filing the return and payment of any tax dues this year is being filed for the earnings between 1 April 2018 and 31 March 2019.
The Income Tax rules mandate that citizens compute their taxable income and pay income tax as per the rate applicable to the central government.
Here are five benefits of filing the Income Tax Return on time.
Often people think that filing of Income Tax Return is an extra burden and unnecessary compliance. However, there are many benefits.
The most important benefit is it gives you the complete picture of the total income you earned during a year and taxes paid on it. It is a statement that you can use in many things including when you avail bank loans.
Filing ITR is aimed to declare the correct return and pay necessary income tax dues, which means you are a compliant citizen of India.
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If excess TDS has been deducted on your income, you can get the refund only when you file the ITR on time.
If you have incurred any business loss, you can take benefit of carryforwards only when you file tax returns.
Income Tax Return is considered as an income certificate which can be helpful while applying for a bank loan. The quantum of loan is dependent on the income declared during the previous year in your ITR.
The ITR is also considered as an important document in case of settlement claims like accidental benefits, etc.
*Sitaram Beria is a Bhubaneswar based chartered accountant. He can be reached at firstname.lastname@example.org. The views expressed are his own.