#135 Responsibilities on our shoulders: Filling ITR

Responsibilities on our shoulder: Filling ITR

Before going into the details of the topic, I would first like to define tax. Income tax is a certain amount of income to be paid to the government at the end of a year. This has to be paid on a specific day regardless of whether it belongs to an individual or a business under condition if the annual income exceeds Rs 1,60,000, after making all deductions under Chapter VI A, then the person will have to pay tax..

The word tax has its root with the word taxation which means estimation. It’s not a new concept. As a matter of fact it has a history as old as 2000years. In earlier days, it was levied on sale and purchase of merchandise or livestock and was paid in a random manner. The earlier evidences are found in decrees of Greece, Germany and roman empires whereas in India, the evidences of the system of direct taxation have been found in literatures like Manu Smriti and Arthashastra. Then taxes were paid in form of gold and silver coins, cattle, portions of agricultural produce, raw materials and even by rendering personal service.

Income Tax Act of 1961 governs issues related to direct income tax in India. According to this act, the calculation of the income tax on the annual income of the person or organization starts on 1^st April and ends on the 31^st March of the next financial year. These are known by the terms – previous year and assessment year respectively. It is collected by the government in following ways-

i)                   voluntary  payment by the tax payers

ii)                 Tax deducted at the source(TDS)

iii)               Tax collected (TCS)

Income Tax return (ITR) is the form through which a tax payer communicates with the income tax department. This leads to a transparent system where a citizen just tells the government about the amount, source and mode of earning income. Income tax return filling provides a method to the citizens to give information about the income and detail of the tax paid. There are different forms available for filling ITR which is based on different status and head of income.

The income tax paid is used in the development of the country such as building of roads, infrastructures, defence. Government uses these taxes to fund the public activities and other welfare projects. A rising income tax shows a corresponding growth in the income. So, it can be regarded as the barometer of the progress.

       There are several benefits of filling ITR:

i)                   It serves as a standard proof.

ii)                 Technology has made the filling up ITR online the easiest task.

iii)               Availability of VISA becomes possible through submission of ITR which opens      up  the gateway to abroad.

iv)                Easier refund claims

v)                    Creates a strong financial background

vi)                  It can be filled even after the scheduled date

vii)         The amount denoted can be used as deductions which help in reducing the taxation income.

We, being the citizens of India, have a greater share of responsibility for the development of the country. So, it is our obligation to pay the tax for our nation. When the paying of ITR is just few clicks away on platforms like H&R block, why should we even procrastinate? The way each drop constitutes an ocean, similarly when we, as responsible individuals move forward and join hands for building our country, it will definitely lead to a great transformation.

#TaxPledge

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

Swati Sarangi

15.07.2016