15 Jul 2016

#134 Be a better citizen by filling up Income Tax return

Be a better citizen by filing up Income Tax Return
In this competitive world, we have no time to halt and think. We are very busy in our daily schedule that keeps us away from many responsibilities.  One of such responsibilities is filing up Income Tax return, which should not be ignored at all. We think that it is just wastage of time and nothing else. But the truth is something different.  Income tax constitutes a large part of revenue for the government of India which is used by the government for the growth and overall development of country. Filling of Income Tax Return not only highlights our patriotic nature but can help us in our financial life. Still confused??  Let me tell you the importance of filling up IT return.

 What is Income Tax?
The biggest revenue mobilizer for the government of India is the Income Tax Department. Income tax is actually the percentage of income that a citizen pays to its government. This helps the government to raise funds for infrastructural development and stabilizing economy of country by paying salaries to the employees working in different spheres with collaboration with government.

Who pays the income tax??
The income tax is paid by citizens of country, corporate firms, corporations, Association of person, body of individuals and companies. It is paid at every month or at the end of contractual earning.
The Income tax payers are classified into 3 categories
1.     Resident and Ordinarily Resident
2.     Resident but Not Ordinarily Resident
3.     Non-Resident

What is division of income of a person??
Total income of a person is divided into following sections-
            1.      Income from salaries
  1. Income from house property
  2. Profits and gains of business or profession
  3. Capital gains
  4. Income from other sources
Why is filling up Income Tax so important?
The income tax return serves the following purposes.
·         It is a showcase of income tax liability and taxes paid.
·         It is a self certification that we have paid the correct tax.
·         It gives the justification of taxes paid.
·         It diminishes any ambiguity in earning and paid tax.
·         It avoids unnecessary search and notice by the income tax department.
It should be kept in mind that if we don’t pay Income Tax, we will be penalized.

What are the benefits of filing up IT Reurns?

Filing up Income Tax return can provide us a lot of benefits which are mentioned below-
1.      This tax will help our country to prosper.
2.      We can get the loans sanctioned quickly and easily without wasting much time.
3.      It is a proof for the income.
4.      We can trade in stocks, open bank accounts, get bank credits, and make investments etc quite easily.
5.      Income tax returns are a must to become eligible to secure certain tenders (for many organisations).
6.      A proof of return filing is a main requisite at the time of applying for a visa.

What are the different forms available for ITR??

The income tax forms are termed as ITR forms.
Return Form
Brief Description
ITR - 1
Also known as SAHAJ is applicable to an individual having salary or pension income or income from one house property (not a case of brought forward loss) or income from other sources (not being lottery winnings and income from race horses).
It is applicable to Individuals and Hindu Undivided Family not having income from business or profession and capital gains and resident who do not hold foreign assets do not have foreign income.
ITR - 2
It is applicable to an individual or a Hindu Undivided Family having income from any source other than "Profits and gains of business or profession".
ITR - 4S
Also known as SUGAM is applicable to individuals and Hindu Undivided Family who have opted for the presumptive taxation scheme of section 44AD/44AE.
ITR - 4
It is applicable to an individual or a Hindu Undivided Family who is carrying on a proprietary business or profession.
Source: incometaxindia.gov.in

How can a person pay income tax easily??

There are two ways in which a person can pay income tax easily-
1.      Offline Mode-We need to fill up the details in a challan and submit this challan along with your income tax in the bank before certain date.

2.      Online Mode- e- Filing is the process of electronically filing Income tax returns through the internet. We have to fill the details of income, deductions and tax payments in the income tax return forms using internet. The income tax return forms are called ITR. There are various forms of ITR available for the tax payers to fill. The process of filing the forms become quite easy by this mode.

We are left with no reason why we should avoid filing IT returns, especially when the process can be done in a few clicks with e-filing platforms like H&R block.

Then what are you waiting for. Go and fill up your Income Tax Return form before its due date and become a responsible citizen.

I’m taking the #TaxPledge to file IT returns with the easy Income Tax efiling option from H&R Block at BlogAdda.

Sweta Sarangi

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