Tax return is the statement about the earnings from different sources of the income and this is therefore for the tax liability, the details about the tax paid and the refunds that was given under your government. The time given to give such information is in four months after the end of the financial year and this means that the business people will have enough time to file their returns.
When you do not file the income tax return, it will attract prosecution, penalty and interest from the Income Tax Department. There are myths that have been associated with filing of the tax return and one of them is to expect that the tax man may knock on the door when tax returns were not yet filed.
The benefits that you will lose when you do not file for your tax returns, they are going to be even more compared to the provisions that were imposed for not filing for the returns. The following are some of the benefits that you will be able to enjoy when you file for the income tax return.
When you clam for the accident for the third Party Insurance: this is one of the rare benefits that you will get when you file for ITR each year. It is immaterial when the income barely crosses or touches the taxable limit. When you file for the ITR on your own or for your spouse, when you think about CA, it will be like pushing you so that you may earn the budgeted revenue from the provided season. This will help you in the future when there is a death of the member of your family in the road accident. At a court trial, an insurance company needs to be shown a proof of income in order to decide on how much you should get as accidental claim. When the claim is missing for three years consecutive, this is going to lower the claim since the court will take the tax return as the evidence. The wealth record, business and fixed deposits are not given too much weight compared to the record of the tax return. A formula used for the claim is to multiply yearly income with the years that the person was expected to live. for related details visit : http://www.ird.gov.hk/eng/tax/ind_ctr.htm
The eligibility of the loans: the income tax return of the three years is the basic that it is needed for all the loan needs like personal loans, business and housing. This is the declaration of the income. Before the banks give you the loan, they wish to know your financial ability and the income details and this is shown by the income tax returns.
To get registration and government tenders: the value of your business profile with other various corporate agency, professional service providers and contractor, will depend on the yearly income. The contractors may have enough history on how they can procure heavy projects within their line of works or service contracts, but they may fail to be aware of the benefits that they can get when they file their returns within the right time. These tax returns have to be filed at the right time and in accurate manner.