Significance of Filing Income Tax Returns And Hiring Tax Attorneys

Filing your tax returns is a sign of a responsible and mature citizen working under the framework of the law. It is an annual activity which helps you and government assess the expenditure by individual citizens and provide means to claim refunds, get benefits or relaxations among other forms of relief. 

There are multiple reasons why it is necessary and sometimes mandatory to file these returns, which include –

• Being a responsible citizen of the country

• To avoid any legal action on you

• To apply and get your loans on time 

• To avoid penalty and unwanted deductions 
  

• To successfully claim your return when in an actual situation
  
  

You may need to hire professional lawyers to look after your accounts to manage them effectively. If you have multiple sources of income then you definitely need to check out the list of the top lawyers in India and get one hired for managing your work. 

Being a responsible citizen of the country

Filing your tax regularly helps you keep track of the expenses you are paying to the government and maintain a transparent process to avoid any middle man cut-offs. It also helps the government estimate and plan return rates, make policies and monitor fraud activities. It helps the income tax department keep a close eye on people evading the tax money and those paying it on a regular basis. 

To avoid any legal action on you

Not filing your tax returns could lead you into trouble in the future. It might seem a good option to skip it in the beginning, but income-tax departments are continuously working on the identification of non-tax payers and eventually imposing heavy fines on them. The rise in population has increased the time to reach this stage, but be sure you’ll be hunt down for the notorious activities concerning tax by the income-tax department. 

To apply and get your loans on time

Filing your return tax regularly and keeping a record of the same could help ease your sanction of loan amounts by reputed banks. It helps you keep a clean record of your income, thus a higher credit score while applying for a loan. 

Not just for loans, but even when applying for credit cards, ITR’s could play a major role for the banks to go through your records and clarify your background checks easily. 

To avoid penalty and unwanted deductions

The government has made it mandatory for people having an annual income above the set limit to pay their taxes regularly. Failure to abide by these rules will bring penalty notices from the income tax department. Also, even if your income does not meet the set limits, it could be a good idea to voluntarily file these tax returns. It is because in many cases of legal ownership, proof of ITR could help ease your process. 

To successfully claim your refunds

Many a time due to the irregularities in amount, it is difficult for the income tax department to judge your annual income by looking only at your bank accounts, and thus deductions higher or lower than your actual tax deduction could occur. Thus to get your extra money refunded, a proof of ITR is essential to claim it back.

Understand this by a simple example - Mr. and Mrs. Mehta are an earning couple. While Mr. Mehta is at a higher position in a company and is earning above the set limits of income tax, Mrs. Mehta works for a small firm and has a comparatively low salary. However, as a family all transactions are made from Mr. Mehta’s account and Mrs. Mehta’s account is used for their savings. Thus, at the end of the year, while deducting the income tax, Mrs. Mehta’s account had more numbers than Mr. Mehta, thus a higher amount of tax was deducted than it should have. Thus, Mrs. Mehta could now file an ITR and claim back her additionally deducted amount. 

Why do you need to hire professional lawyers/advisers?

While the entire process could look simpler from the top, it gets a real mess when working on the depths. People having higher income are already pre-occupied with their daily work and are unable to find the loopholes in their tax deduction effectively. Moreover, filing returns need to follow a certain legal procedure which is not known by many. Thus a professional lawyer could help suggest you ways to minimize tax deductions, help manage your files and maintain all your necessary returns thus keeping you on the safer side.

There are various corporate law firms in Delhi that can help you understand this process properly. They are specialized in this domain and can help you better to understand the various effects and investment techniques to get the best out of your income. 

Be a responsible citizen and file your taxes regularly to avoid any false action by the income-tax department. 

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Created on Feb 20th 2020 06:30. Viewed 318 times.

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