Filing tax returns on time and consistently are the duties of a responsible citizen. Taxes paid
citizens are used for the betterment of our society in aspects like infrastructure, development, providing better facilities, etc. Hence, paying taxes, apart from being a duty, is also a way of giving something back to society from which we gain so much.
Here are 4 reasons why you need to pay your tax debt now:
· Your loan applications will need to see tax filing
While applying for any loan, almost all financial institutions may insist on seeing your tax returns as proof of your identity and also a way for you to prove that you will not turn to an NPA since you are consistent in your payments.
If you are planning to apply with your partner, it will be best if both of you have a good tax filing record. Financial institutions also sometimes mandate tax filing documents in their documentation requirements for all types of loans.
· Mandatory for immovable property registration
Even if your income level does not meet the minimum qualifications for tax filing, it is always better to file your taxes regardless. In many states, presenting your tax return records for the past 3 years is necessary for the registration of any immovable property.
· Legal actions
Not filing your taxes on time also makes you liable for legal action and a fine of Rs. 5000 will be levied. If the taxes are still not fined, in a lot of cases properties and assets are seized by authorities.
· Applying for revised returns
If you are a regular taxpayer, then you can easily apply for a revised return. However, If you have not filed any original return, you will not be allowed to file for a revised return, regardless of your urgency.
It is essential for every citizen to file their tax returns. It is not just important for the sake of avoiding legal implications. It is a lot more important for you to fulfil your duty as a responsible citizen of the country.