How do you feel when your employer deducts TDS from your gross salary and your net salary plunges to a figure you feel ashamed of? Just to explain through an example, if your annual salary is 6 lpa, the simple calculation is that you should get 50 thousand every month into your bank account, (at least this is what the elders think). Sadly you see around 10 thousand less every month in your bank account because of PF and TDS.
Suddenly at the end of the year you find that you have received less net salary than your peers who are receiving the same gross amount. Apparently you had not done your tax planning properly. The other reason can be that you forgot to declare some of your expenses and investments and missed the tax exemption from the government. You ended up paying more tax. But there is still a way to get the excess tax back from the government. You file your return and include all the valid exemptions under different sections of Income Tax rules.
If I stay politically correct, I would say that you should pay as much tax to the government as you can afford. But I also realize that when you are spending your money on various items such as conveyance, food, rent etc. you are already paying other indirect taxes and hence there is no reason why you should be taxed twice.
Numerous other reasons that should prompt you to file your return, other than getting back the excess tax you paid to the government like Your child want to apply for a scholarship, You want to apply for a home loan or a car loan or a personal loan, You want to track all your previous investments and their return including interests and dividends, You want to track how much you spent and how much you saved etc. There are so many personal benefits other than the fact that you are paying tax for the good of the nation (details of which in my post here)
"I’m taking the #TaxPledge to file IT returns with the easy Income Tax efiling option from H&R Block at BlogAdda.”
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