In simple terms the Income Tax Return is the document wherein the assesse submits its earned income to Government and makes payment for the services and facilities availed by him called as tax which is supposed to be used by the Government for the welfare of the country only.
Technically speaking the form approved by Income Tax Authorities as per the requirements of the Income Tax Act 1961 is commonly called as the Income Tax Return comprising of various heads of income under which the assessment is done. broadly speaking the Income Tax Return is divided in to following five heads of income-
As per the requirement of the law, the income earned in the previous year is assessed in the subsequent year which is called the Assessment year. To simplify, it means that the income earned in the year 2017-18 (Previous year) will be furnished to Government in the form of Income Tax Return in the year 2018-19 (Assessment Year) as applicable in the respective cases of the assesses depending upon the amount of income earned and subsequent falling in the particular slab.
Benefits of filing Income Tax Return
Apart from a statutory requirement and a moral responsibility of every citizen, there are other key benefits of filing Income Tax Return also. Normally a lay man does not understands sometimes the benefits of filing Income Tax Return rather sees this as an additional burden for himself. But in actual parlance the position is totally different as shown below-
1. Transparency of your income and earnings
The assesses who are regularly filing their returns are considered more transparent by the Government for every transaction which they are doing. Generally it is said the people filing income tax returns do not hide black money , rather they convert all their black money into white by declaring the accurate income in their Income Tax Returns.
2. Preference in availing Loan Facilities
Whenever a person requires loan from any bank, he / she is usually asked for Income Tax Returns. On the basis of these returns only the accuracy and authentication of his income is identified and declared by the ban officials.
3. While applying for various Jobs
There are numerous sectors in India where previous year/s Income Tax Returns are mandatorily required for applying for the posts. For example in eth following categories-
a. For appointment in Judicial jobs
b. For class one posts
4. Immigration from India
The credibility of the Indian Citizen along with the verification of the PAN details is done by the immigration agencies while recommending him for immigration from India. This is only possible if the person has consistently furnished his Income Tax Returns well in time.
5. Benefits to Corporate Assesses
It is a statutory requirement for corporates to file their Income Tax Return as per their due dates. Only if they have furnished their return well in time, they can apply for appointments as the regulators, panelists, reviewers etc.
6. Insurance Claims
As mentioned in the cases of Banks, Insurance companies also demand Income Tax Returns of the assesses while issuing policies as well as at the time of release of claim particularly in the case of accidental claims in third party insurance.
These are some of the key benefits of Income Tax Returns which one should file to declare the correctness of the income earned in the previous year so that the end benefits can be enjoyed by the assesse himself.