Out of over 120 Cr people in India, only around 4% people file their Income Tax returns. Then why should you even consider getting in the hassles of tax compliance, if you could survive till now, you could probably survive forever. However, here are some reasons why you should consider getting compliant.
1. Be an honest citizen and fulfil your Dharma
We have long cribbed about our infrastructure (or the lack of it!), how our country is not at par with the Western worlds. Your taxes contribute in nation building, to pay for the cleaners who keep your city clean, for all the civil services we enjoy, to protect our nation from invaders. If this is not convincing, then think of it as donation. Every religion preaches that you should help others in need, taxes is a way to transfer money from someone who has by the grace of God a bit more to someone who has a bit less. But what if you are an atheist/ don’t care about your country and want to run off at the next possible opportunity..? Well, maybe the following reasons may convince you to file your taxes.
2. Claim TDS refunds
Almost all services come under TDS deduction. In most cases you can escape by showing only 6-8% income under section 44AD. Then why not make money by filing returns and claim back your TDS?
3. Avoid Government hassles
But what if there is no TDS deduction at all? Hooray… no one knows what you earned! But wait a minute. Did you or your supplier/customer generate E-way bills in your name? Or are you registered in GST? Even if above are not the cases, did you deposit cash in your bank account? Then probably Government knows you are doing just fine, and sooner or later they will catch you. So sleep tight, file your returns and live happily.
4. Create a profile for future loans and business growth
Still not convinced? Then think of your needs as you grow. You may need a credit card, or your children or wife will demand it one day. Then IT returns will save you. Or you need a bigger house for which you need a loan, or simply you need a loan to grow your business. Your IT Return is a mirror of your financial health, and without this you can’t get a loan.
5. Give a better future to your children
Still need more reasons? Then think of your children. Everyone wants their child to have a better life than what you had. Your children should get the best education, and everything that has the word best in it. But how will you apply for student loan without ITR? How will you buy a new house for her or him? Today is the age of online payments, and with digitization, Government will track your every financial transaction if not now then in the future. So slowly build your profile for the future. Paying taxes is like giving sacrifices in a Yagya for a better tomorrow.
6. Avoid DEMON-itisation!
We all have heard stories of how people have lost money in demonetisation, ranging from 10% to almost everything based on your “contacts”. If you had probably declared this income to the Government, kept it as an F.D. with a bank, then you could have multiplied your money also and slept peacefully also. So be smart, and don’t let demons haunt you.
7. You are the unlucky chosen one!
Alas! If you are not convinced by now then you are probably a risk taker who will probably continue the old ways. But there are other who are forced to declare entire income… our beloved employees, who first pay taxes then earn, whereas businessmen first earn, then spend and then whatever is left pay tax on a part of it. Such is the law… so all employees please file your income tax returns as you have nothing to lose but only gain.
8. File Income Tax returns and grow rich!
And last but not the least, filing taxes makes you grow rich. Here’s how… Government gives incentives to various savings such as LIC, PPF, Sukanya Samridhi Yojna, health insurance, interest on savings account income, and many many more. Just to save tax, people invest in this. Imagine if you save Rs.500/- per month in PPF for 25 years since the birth of your child, she/ he will have Rs.1,50,000/- at the time of his higher education/ marriage. And you also reduced your taxable income by the same amount over the years. Also, don’t forget that money declared to Government can be kept in banks in FD and earn interest.
So get going, start preparing for your tax filings, and if you need any assistance, then Popcorn Infotech is right around. For any assistance call us on our 24x7 helpline number 8767003366.