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INCOME TAX RETURNS

IT return filing is much less of a hassle than it used to be in the pre-internet era, nowadays the option of ITR filing online is available to everyone, and over time has been made more and more accessible for everyone to utilize. INCOME TAX RETURNS

In today’s rapidly changing economy, it is not just enough for an individual to earn a big paycheck or get a huge profit out of his/her business/investment.

The amount earned must be well managed and invested in all the right places for the individual to get incrementally richer and more prosperous as time goes on.

We have all heard stories about incredibly successful entrepreneurs that came from extremely poor backgrounds but their passion for doing business helped them make all the right decisions at the right time along with managing their profits efficiently by investing their money at profitable places and paying taxes to the authorities.

This led them to slowly and steadily accumulate enough wealth to establish their own business empires that are talked about by everyone and have a direct impact on improving the quality of life of everyone in our modern society.

On the other hand, mismanagement of wealth by certain established big entrepreneurs has led to their shocking downfall from wealth and grace.

These entrepreneurs, in contrast to the high points of their lives, had to pay a huge sum of money as a penalty that had a direct impact on their businesses, in some cases this might mean they had to close shop entirely.

Some of these individuals had to flee the country to avoid being penalized by the country’s jurisdiction and even serve sentences based on the seriousness of their fiscal transgressions. INCOME TAX RETURNS

tax statement

INFORMATION BASED ECONOMY

The term, information-based economy especially rings true here as the informed are much more likely to make better decisions that consequently lead to them having a better life for themselves in the future.

This not only improves their life but in the long run improves the lives of everyone around them.

These individuals not only help their loved ones by directly sharing their wealth but also all the information that got them there in the first place enabling everyone that they interact with to continue making similar decisions.

This has led to many individuals that, on paper may be involved with doing jobs that earn them meager paychecks, have a prosperous life by investing and managing the amounts earned effectively, and searching for newer and better opportunities as time goes on.

One of the more mundane responsibilities that each and every one of us that earns a substantial amount of income via our businesses or jobs have to manage is paying our income taxes.

INCOME TAXES 

Income taxes are mandated by the government as compensation for the individual’s or organization’s growth and progress over time using that country’s resources.

Income taxes are not consistent globally and may vary depending on a lot of factors, like the competition, available resources, quality of labor, etc.

The Indian government has overall decided to take a soft-handed approach and kept these taxes under control to allow individuals and businesses to prosper within a reasonable limit.

SPECIFICS OF THESE TAXES 

As such, let us take a closer look at these taxes mandated on individuals in specific terms.

Firstly, anyone under the age of 60 is required to pay these taxes if their annual income is more than Rs. 2.5 lakhs according to the governmental requirements of the fiscal year 2019-2020, this amount is considered before the deductions made by article 80U and article 80C.

Secondly, anyone that falls between the age of 60-80 is required to pay these taxes if their annual income is more than Rs. 3 lakhs according to the governmental requirements of the fiscal year 2019-2020, this amount is considered before the deductions made by article 80C and 80U.

And finally, anyone above the age of 80 is required to pay income tax if their annual income is more than Rs. 5 lakhs according to the governmental requirements of the fiscal year 2019-2020, this amount is considered before the deductions made by article 80C and 80U. 

All the above tax requirements are presented individually to give a more comprehensive overview of how these taxes are structured.

You must have noticed that these tax requirements are much more lenient on the elderly, the reason for this is that older people require more resources to take care of themselves.

In some rare cases, these elderly are the only source of income for an entire family, and as such these tax impositions must not be as harsh on them as other lesser aged individuals.

BENEFITS AND SUMMARY

There are also some benefits that are available to an individual who chooses to file their income tax returns such as: Applying for loans, claiming refund, carrying forward losses, Visa processing, qualifying for attaining government tenders, high life covers, and policies.

So, in conclusion, there are a lot of reasons for a person to prioritize their IT return filing.

And nowadays, these are made especially hassle-free by the availability of ITR filing online.

We hope that you found this article interesting and informative, take care of yourself and everyone around you by following government-mandated precautionary measures

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