Financial literacy direct relationship with your awareness of taxes and how you can use them for your betterment.
In the game of life, your success is measured in numbers in your bank account, and your annual earnings are reflected through your income tax return.
Filling tax returns from businesses and professionals not only paying taxes or showing their annual income and source of income but also show their financial performance, growth or decline level, and earning financial positions.
We all set goals, make plans, and attempt to achieve them that is a never-ending process but ultimately all the efforts end when we calculate how much money you made in our life.
Advantages Of Tax Filing For Small Business
Business owners and professionals keep the focus on the emerging opportunities to acquire first and show their income in their income tax return which helps them in building their credibility, reputation, business transparency, and financial positions.
Countless benefits are with filing taxes for businesses and professionals.
Many more benefits of filing a tax return for businesses and professional and these benefits counts much in their life.
1. Carry forward loss
If you have a capital loss you can carry forward the loss for up to 8 consecutive years and you adjust these against income under the title of “ profit and gains of business and profession category.
2. Assisting applying for a loan
A tax return is helpful in applying for a loan and if you are a business owner or professional you can apply for a loan and on the basis of the tax return loan will be approved.
3. Saves from penalty and prosecution
Every government has rules and regulations or guidelines about tax filing and if you are a professional or business owner but not filing a return you can be punished or charged a penalty by the income tax department or the government.
4. Helpful in winning a government tender
Helpful in winning a government tender because government tender is only submitted by authorized and valid institutions of professionals who are filing the return on time and have all the documents of income proof and return certificate and these documents are helpful in defining the eligibility of the bidder.
5. Claim depreciation
Tax evasion carries severe penalties around the world, as well as in India. in addition, late filing additionally carries penalties, which might withdraw your profits.
Therefore, filing your tax returns and doing therefore on time can prevent redundant tough things with the taxation department, permitting you to concentrate on your business peacefully and keep enjoying benefits.
6. Avail of presumptive taxation scheme
The procurement of state tenders is usually co-related upon the undefeated verification of your money records, which is finished by checking your annual tax returns for many years.
The candidate most fitted to the tender will be cross-checked to see if the individual is capable of overseeing the project.
7. Image building
Tax filing accelerates professional or business image building and shows how much you are serious about your duties and accountabilities.
Your fair business practices, business better financial picture, accurate accounting, balance sheet and will create your business brand value.
Top apps on android and iOS for easy ITR filing online
Now you can file your return with help of Apps that can help you in filing your ITR.
These will make your ITR process easy and give you a hassle-free platform to file your ITR.
Why to filing taxes?
Nowadays income tax return has a vital role in your professional and business practices because it builds the business or professional image, creditworthiness, financial positions, asset, and liabilities status, and comparison about growth and decline yearly basis.
Purchase of any property or slow-moving products on an EMI basis tax return certificate compulsory and is helpful in defining your income source and how financially strong you are.