Income Tax is to be paid by everyone who is earning income. But then there are people who are below tax bracket and people who are above tax bracket. Best Financial Adviser Kuber Mindz Moneymindz says that whether you are below or above tax bracket, it is better to file your tax returns.
First let’s have a look at the different tax slabs:-
- If your income is up to Rs 2,50,000 there is no tax
- If your income is from Rs 2,50,000 to Rs. 5,00,000 there is 5% tax
- If your income is from Rs 5,00,000 to 10,00,000 there is 20% tax
- If your income is exceeds Rs 10,00,000 there is 30% tax
Let’s look at a few merits of filing Income Tax Returns (ITR):
No forbid for Visa application
By properly filing your tax returns, you can prevent visa hassles. This is because the embassies of countries like US and Canada and many countries in Europe often insist upon seeing copies of past tax returns. You have been warned.
Buy high cover insurance policies
Insurance companies that presume that you might be a tax evader will usually have a witness to support them and will abstain from offering further policies and covers.
Credit Card processing
By not filing your ITR, you can pave the path for having your credit card application rejected.
Relieved bank loan documentation
The bank can access an individual’s source of income when he/she is a honest taxpayer and applies for a loan. Don’t complicate matters by not filing your ITR.
Extra interest can be prevented
File ITR and avoid having to pay extra interest that will add up to 1% monthly
Why pay penalty of Rs 10,000 instead of filing and paying ITR?
This crucial document is proof of your address
ITR encompasses your income, taxation, and revenue and is more detailed than Form-16. It also acts as an evidence of your address.
Freelancers and self-employed people need not face hurdles
Since they don’t have Form-16, they may have to face funding and transactional concerns. This can be averted if they file ITR.
For more information visit www.moneymindz.com or give a missed call to 022-62116588.