We appoint the government, to administer the country on behalf of its people. But this government cannot function without any financial assistance. Thus it collects taxes from its public in order to generate resources enough to perform functions of governance with ease.
It is mandatory for every individual to pay the government some amount of their income, for the overall welfare and development of the nation and society. This tax is called the Income tax. Each year, after filing their final accounts, the auditors or the businessmen themselves determine the amount of money they owe to the government in form of taxes.
Why Pay Income Tax?
Legally, people are obligated to part with a specific amount of their share of earnings to the government. The government predetermines the brackets of income tax applicable to be paid. Say people who earn more than two lacs every year come under the primary bracket. Income tax is levied on them with a certain rate, and a specific percentage of their earnings are worth being legally charged as income tax.
What are Income tax returns?
Throughout the year, people pay different taxes, namely Service tax, entertainment tax and more recently VAT (value added tax) has been included too. In fact, some companies even pay salaries only after cutting taxes. Thus, if people pay income tax above all these paid amounts; they will end up paying double the money they were supposed to pay. Thus if you are in a habit of paying your taxes regularly, make sure that you have filed your income tax returns which will help you avail of the extra money you paid.
How do you file for returns?
These income tax returns come in the form of money already paid to the government in form of other taxes. At the end of a financial year, either by self assessment, or by auditing done by a chartered accountant, you can determine how much amount you are to be returned. This is done with the income tax department under income tax returns filing. And in this way you make sure you save a lot of your earnings, and maximize your well being.
Pay your taxes regularly and file your returns to avail the extra amount paid.
