That special time of the year is near. The time to once again becoming a responsible citizen of the country. The time to file your tax return. Albert Einstein quotes “The hardest thing in the world to understand is the income tax.”
Don’t worry; the internet and we bloggers are here to simplify things and to help you understand everything that you need to know about taxes. Firstly, lets understand what taxes actually are and why should we pay them.
Income Tax in simple words is tax on a person’s income. Income tax is charged on total income of previous year of a person by tax rate of relevant assessment year. For salaried individuals, online filing of tax is the easiest way to file income tax returns. An income tax return filing refers to a tax form or forms used to report income and file income taxes with tax authorities.
We need to be responsible citizens and pay our taxes from time to time. Our taxes are the biggest factor that helps the government run the country. Our taxes help the government to build new and maintain old infrastructures and also provide other facilities like education, sanitation, transportation, etc. Our taxes also pay the salaries of the defence department of our country and also help the government to buy defence machinery and weapons.
It is mandatory for those earning an income of Rs 5 lakhs and above to file income tax returns online. But why online? Let’s have a look.
- The process is simple and hassle free.
- E-Filing saves time, energy and also helps in saving the paper.
- E-filing income tax returns are safe and secure to use and you can also track your process from your account with the tracking facility. You also receive notifications and updates on your phone and email for the same.
- E-Filing proof can also be beneficial while applying for government tenders, startup funding, accidental claims in third party insurance, visa’s or loans as a proof of your financial income.
- You also receive money back or refunds in case of excess deduction.
Non-filing of Income Tax Return attracts interest, penalty, trial and inspection from the Income Tax Department.
So remember to Save the Date- July 31st