13 Reasons Why You Need to File Income Tax in India

I am a tuition teacher, I don’t need to file income tax. I am just a middle-class woman earning some money from my home kitchen, surely, I don’t need to file income tax. If you can relate to these statements then it’s probably time, we enlighten you on why tax filing is important for everyone, a self-employed person, a freelancer or a white collared employee of an MNC.

To make things easier, we have highlighted 13 reasons why you need to file income tax in India. Read them all here.

1. To Help the Government

One good reason to file an income tax is to help the government decide the means and amounts of expenditure of citizens. When the government has realistic data, it helps in creating citizen-friendly policies.

2. It’s Mandatory at Times

Filing returns become mandatory for people who earn a specific amount of money in a year. If it is found that you are not filing the income tax when it’s mandatory for you, you can get in trouble with the income tax department.

3. Registration of Property Becomes Easier

If you want to register a property in your name, furnishing income tax returns of the past three years might help you to get done with the process easily.

4. Getting Loans Becomes Simple Too

People who want to take a home loan should maintain a steady record of all income tax returns as a loan provider would certainly want to see the same to establish your credibility as a loan seeker.

5. Getting a Credit Card is Simpler

If you want a new credit card, providing copies of your income tax returns will help the card provider to issue you a card swiftly.

6. Claiming Adjustments

Claiming adjustments against past losses is easy when you have filed income tax consistently.

7. Revised Returns

In case you want to file a revised return, you must have filed the original return previously.

8. Revoking Rejections

When you have filed income tax returns for years, you can show it as a proof of your reliability to a loan company and persuade it to cancel your loan application rejection. It also comes in handy if the loan provider is offering a less amount than the amount of loan you need.

9. Visa Processing

If you want to go abroad, you will need to have a visa interview. During the interview, you will be asked to furnish ITR receipts of the last few years or the latest year. It will ensure the country administration of the nation you plan to travel to that you will come back to India and won’t settle there.

10. Purchasing High Life Cover

In case you want to get a high valued life cover, the ITR receipts will come in handy. This is especially needed when you want to buy a term policy with a sum insured that is of INR 50 lakhs or more.

11. Government Tenders

If you plan to bid for any government tenders, you will need to provide ITR receipts to prove that you are reliable. The number of receipts you need to provide varies from one government department to the other.

12. Proof of Income

If you are self-employed or work as a freelancer, an ITR return might work as a substantial proof of income. It comes in handy during job interviews if you plan to join the corporate world again.

13. Marriage Prospects

Believe it or not, if you are self-employed and you need to prove your earnings to a prospective bride or groom or their families, ITR receipts will help them trust you better, especially if it’s an arranged marriage.

Why Are Co-Operative Banks in India Essential for the Country?

There are a lot of co-operative banks in India and so long that we are just used to them being there. Have you ever paused and thought why India has so many co-operative banks?  Are they essential for the economy? Are they vital for democracy? If so, you’ll get all the answers right here.

WHAT IS A CO-OPERATIVE BANK?

For the uninitiated, a co-operative bank is a financial entity that belongs to the members. The members of such banks are the customers as well as the owners of the bank. Though these banks need to comply with prudential bank regulations, they usually belong to the people who created them. These people often belong to the same professional or local community.

KEY CHARACTERISTICS OF CO-OPERATIVE BANKS

• The main goal of such banks is not to earn a profit but to provide quality services to all the members and even the non-members.
• The Board of Directors are elected by the members who have the same voting right. One person, one vote principle, is followed.
• Most of the profits are usually used to build reserves, but some of them can be allocated to members as well.
• In India, co-operative banks have short- and long-term co-operative structure.
• Key types of co-operative banks in India are Primary Co-operative Credit Society, Central Co-operative Banks, State Co-operative Banks, Land Development Banks, and Urban Co-operative Banks.
• These banks have to abide by the Co-operative Societies Act of 1904.
• They also need to follow the rules laid down by the Registrar of Co-operative Societies.

WHY ARE CO-OPERATIVE BANKS IN INDIA ESSENTIAL?

• Rural Financing

These banks play a key role in rural financing which includes but is not limited to providing finances for agriculture, milk, livestock, personal finances, nursery, etc.

• Urban Areas’ Development

They promote the development of urban areas by facilitating self-employment, personal finance, home finance, consumer finance.

• Promotion of Small Industries

They also help in the promotion of industries and small-scale units.

• Promotion of Democratic Values

These banks promote democratic principles because they are created for the people, by the people and are of the people.

In essence, it can be said that co-operative banks in India are essential because they help in the development and welfare of the people and are not just profit-oriented. These banks reach out to those in need of money in rural areas and hence help in the development of remote areas. Though upgrading these banks and managing them better is the need of the hour, eliminating them won’t be a good idea.