Upgrad LLM

income tax

EXECUTIVE - HR & ADMIN.

Sir,

As we know that, as per rule it is necessary to pay Income Tax. Can you explain me what are benifites  of Paying Income Tax for a Salaried Person.

 
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Lawyer

the benefits are in the form that you are compliant of the income tax laws and is not evading tax plus this will be used in the development of nation. No personal benefitsas such.

 
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FIN

Mr. Sanjeev has pointed out very imp. aspect "you are compliant of the income tax laws and is not evading tax ".

Avoid wilful tax evasion: In certain cases, you may even be liable for prosecution for intentional avoidance of tax payments. 'Better late than never' is the best policy when it comes to income tax payment.

Standard Income Proof: ITR is considered a customary income proof not only in India but also globally. If you are looking for higher education or employment abroad, ITR is the largely accepted income proof.

Speeds your loan application process: Apart from a good credit history (or past repayment track), the fact that you are filing your ITR regularly gives you speedier access to credit and at better terms -- although not necessarily a larger line of credit, but surely a better rate.

It also provides the impression to the financier that you are a law abiding citizen and will repay the loan within time.

Power of PAN: Permanent Account Number or PAN issued by the IT authority is not only a prerequisite for filing ITR but is also now mandatory for all financial transactions -- from opening a bank account, or purchasing mutual funds to real estate for investment. So it makes sense to get yourself one even if you don't have much income to boast of.

Claim your tax refund: Filing ITR is not always about paying tax. It can be used as a means to reduce your tax liability! Yes, you heard us right. Take for instance, salaried employees for whom TDS has been cut during the financial year can claim refund if the tax outgo has been more than the actual tax payable.

Every person with taxable income (over and above the tax exemption limit) should file an income return, even if her/his tax liabilities have been taken care of by the employer through tax deducted at source (TDS); persons whose salaries have been subjected to TDS are also required to file return because they may have earned from sources other than salary (house property income, capital gains, etc.).

The entire tax payable on your income has to be paid before filing the return of income either by way of tax-deducted at source (TDS), advance tax or self-assessment tax. Ensure that it is done before the ITR is filed.

Not only for refund, you also need to file your income return if you are claiming carry forward of loss (say, from long term capital asset or from any other source of income). In such cases, filing returns within the due date is a must.

 
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Advocate

Taxes generate money. Everybody thinks of ways to avoid or perhaps lessen the burden of paying due taxes. But do we ever wonder where our taxes go and who are benefited from our diminutive expenses at the end of the year? There are infinite benefits of paying taxes. We pay taxes to take advantage of all facilities and amenities around us. We dig deep into our pockets to enjoy all the good things we see every day. We pay taxes because we want our children to attain the best education. We pay taxes because we want to have the best health care for our families. These are just among the countless benefits we obtain from paying taxes. In short, we pay taxes because we care.

Government Allowance

We need to pay taxes to run the government. Like any other institution, government is embodied by employees running to serve the whole populace. It has its own administrators, personnel, and facilities. Thus, the entire machinery needs financial assistance to govern the community. Our taxes are used to finance the administrators and employees. Generally, the taxes we pay are directed towards the government. It consequently distributes allowances for each and every sector of the government. Can you ever imagine the nation without the government?

Construction and Maintenance of Public Facilities

We drive smoothly on highways. We travel a lot because we want to enjoy public amenities like museums, parks and other recreational facilities. Remember, we all contribute to build up roads, bridges and highways. These are not merely projects of the elected officials. The money used to build each and every public facility comes from our own pockets through the taxes we pay. In fact, we should be proud that we have contributed towards the construction and maintenance of all amenities enjoyed by the community.

Health Care Assistance and Education

We pay taxes because we care for the less privileged community. Not all of us can afford the best medical care and attain the highest education. Part of the taxes we pay will benefit the less fortunate ones to get free healthcare assistance and free education.

Social and National Security

Do not ever attempt to call emergency services when you don’t pay your due taxes responsibly. We pay for the services of the policemen and firefighters in our society. Although created by the government, we sustain the services of these social guardians through the taxes we pay. Furthermore, we sleep in comfort knowing that our nation is protected from external enemies by our tough soldiers.

If You Don’t Pay Taxes, DO NOT

Send your children to public schools and state universities

Expect for Medicare assistance when you get older

Attempt to seek help from emergency services hotlines

Aware yourself with weather forecast

Utilize public transportation

Expect that you are protected from violence

Use the post office

Apply for government grants

Look at the public safety signs

Use any public amenities, EVER!

In conclusion, we pay taxes to create social responsibility within the society. We sponsor all public facilities that are being enjoyed by the entire community. Tax payers must not whine about having to dig deep into their pockets instead they must understand the real essence of paying taxes. Because we contribute to the existence of these public amenities, we must be proud citizens.

 
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Advocate

My reply is not only for the salaried class but the public in general.

 
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Advocate

Originally posted by :A V Vishal
"
It is our duty to pay taxes, don't bother about the benefits, for example when you do something or spend for your family is it out of love for them or in anticipation of benefits in future, similarly the same applies in respect to the nation also. My reply is not only for the salaried class but the public in general.
"

 
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ADVOCATE & TAX CONSULTANT

I  agree with Mr. Vishal. Being the citizen of India, we have to do something for the development of our country. We have abide by the law of the land. we have to follow the laws. 

 
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