We all like our income to constantly keep increasing and dream of it rising exponentially. As we reach new heights of success and thereby new levels of revenue earning, we are duty bound to file income tax returns.
A tax is a financial charge or other levy imposed upon a taxpayer( individual, institution or organisation) by a state or its representatives to fund various public expenditures. This is how wiki pedia defines tax.
The purpose of tax is to raise revenue to fund government, to enable it to carry out expenditure on economic infrastructure, military of the country, scientific research, public work and operations of the government itself. Some of it is also utilized in welfare schemes of health, education and employment generation for the poor citizens.
Tax is the main source of government revenue which is needed even for public utilities like road and bridge building, law and order maintenance and other development programs. Income tax therefore helps in the overall progress and development of the nation.
It is thus an important duty of every law abiding and country loving citizen of the nation to regularly file income tax return. There are approximately 3 crore individual tax filers in India.
Some advantages of filing your income tax return:
- you can use it as your standard income proof.
- sanctions of loans either for your dream house or higher education becomes easy and quick.
- trading in stocks, opening bank accounts or making any other investments becomes easy for you.
- it becomes easy to obtain a visa for foreign travel as most countries want to know your financial sound status before granting visa.Income tax returns come in handy to prove your financial worth.
- planning a financial portfolio becomes easy.
It is important to file your returns timely and regularly to maximize your tax refunds.
With the help of information technology and internet, filing income tax has become an easy task which was earlier considered cumbersome by most of us. Now transactions which were once time consuming can be done quickly and easily.
Thanks to the adoption of information technology by Indian income tax department, e-filing of income tax is not a big or difficult task anymore. It involves easy step by step procedures which are simple to execute.
Some of the benefits of e-filing of income tax returns are:
- It gets filed in a timely manner, without any undue hurry just before the deadline approaches. E-filing transfers your tax return documents instantaneously to income tax department. There are no chances of these important documents getting misplaced, forgotten or lost unlike the earlier paper based system.
- No chance of submitting wrong info related to name or income details as corrections can be made as many times as needed after filling the details before final submission.
- E-filing is cost effective and hassle free. You don’t need to pay heavy fees to get your documents prepared by professionals.
- Easy and accurate calculation is possible for knowing the taxable income. You can thus find optimum plans to maximize your deductions, lowering your taxable income by great margin .This puts in a lower tax bracket and helps in saving a big amount.
- You can double check the details like PAN number, bank account numbers and address and calculations can be verified again and again.
- Tax refund is fast and easy. When you file return online, often you get tax refund directly into your bank account within a month.
- You can view your tax credit and file it online from anywhere, anytime. You can even track the processing status in real time.
E-filing is completely DIY (do it yourself) with the easy steps to be followed and user friendly approach. If you still need some assistance in filing your income tax return electronically, you can take the help of platforms like H&R Block which have experienced tax experts on their panel who guide you at each step and are available on chat for solving all your queries. They have tied up with 300+ corporates and e-filed more than 3 lakh returns with 9/10 customer satisfaction score.
Keep these documents handy when e-filing your tax return:
- Form 16- This is your tax credit statement as well as your salary certificate.It has two parts- part A (contains TDS details from your salary )and part B( contains salary details like allowances, basic salary, deductions under chapter vi A etc.) You can upload your form 16 directly or fill it manually making sure you don’t miss out on any info.
- Tax credit statement 26 A – Form 26 A contains details of -tax deducted from tax payers income,tax collected,advance tax etc.
- Investment details- details of ASF,NSC,ULIP, UTI,PPF,Equity saving schemes,ELSS etc.
- Interest income details- interest earned on saving bank account,PPF account, FD etc.
- Medical or life insurance details-The premium you pay for these are allowed as deduction from your income.
- Bank account details- It is compulsory to mention all your active bank accounts as on date of e-filing the tax return. Details like account number,IFSC of your bank branch and type of account should be provided.
So, choose the easy, secure, accurate and quick way of filing your income tax return online and remain in the good books of financial institutions and fulfill your duties of being a good citizen.