Why should I file my Income Tax Return?

I have just received Form-16 from my HR and she has asked all the employees to file their Income Tax Returns. But I really dont know why should I file my Income Tax Return? said Rahul, a young salaried graduate to his colleagues in office cafeteria.

Like Rahul many of us have the same question ringing in our minds every time we are asked to file income tax returns. Let us find out the main reasons for filing Income Tax Returns:-

  1. For getting your money back In case your employer has deducted excess tax on your salary (called as TDS), or you have deposited advance tax in excess of actual tax liability or forgot to disclose a particular tax saving investment at the time of declaration, then good news is that you can get your hard earned money back by just filing Income Tax Return.
  2. For getting loans from banks Every bank checks the credit worthiness of the persons who have applied for loan and Income Tax Return is a standard document that gives assurance of the same. Every Loan Seeker is required to submit Income Tax Returns of preceding 3 years to the bank.
  3. For claiming insurance amount in case of loss/ fire Many of you might not be aware that in case of any damage of goods by fire or loss by theft, insurance companies use a certain formula to calculate the amount of claim admissible. Sales figure & Net profit are major ingredients of that formula. So, if you file your income tax return, then at the time of claiming insurance amount, you can use the returns effectively to prove the amount of net profit and hence can claim legitimate amounts..
  4. For carrying forward the losses Are you having losses from business or house property and want to carry forward it to next year to adjust it from next years profits? Then income tax return filing is mandatory for you. If you dont file your income tax returns on or before due date, you will lose the benefit of carrying forward your business losses.
  5. For applying VISAs If you are planning to work or study outside India then, you need to file your Income tax returns because VISA Issuing Officers ask for Income Tax Returns of last 3 years in case of issuing VISAs.
  6. Last but not least, when everybody is trying to contribute in MAKE IN INDIA, you must also file your income tax returns because Income Tax Department can bring tax reforms only on the basis of analysis of income tax returns filed. And higher the number of income tax returns, higher the data for suitable analysis.

So, have you prepared yourself to file pending income tax returns? Provide us the details on mail and we shall get it done for you. With Tax2win, no need to worry about tax compliances..

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