Why do we need to fill income tax?



Why do we need file income tax? My income is < 5 lakhs but my income tax is nil because of my housing loan repayment as EMI. Do I need to file income tax for 2012-13?Thanks.

Why do we need to fill income tax?
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4 Replies to “Why do we need to fill income tax?”

  1. Everyone is subject to taxation. The amount of taxes you owe is based on your income. You must pay taxes throughout the year on a pay-as-you-go system. People who earn more income have higher tax rates than those who earn less, this means tax rates get progressively higher the more you earn.

    You must file tax depending on what you earn

    Even if you do not have to file, you should file to get money back if Federal Income Tax was withheld from your pay, which if you were an employee most certainly happened or you qualify for any of the following:

    Earned Income Tax Credit. The Earned Income Tax Credit is a federal income tax credit for eligible low-income workers. The credit reduces the amount of tax an individual owes, and may be returned in the form of a refund.

    Additional Child Tax Credit. This credit may be available to you if you have three or more qualifying children or if you have one or two qualifying children and earned income that exceeds $ 11,300. The Additional Child Tax Credit may give you a refund even if you do not owe any tax.

    Health Coverage Tax Credit. Limited to certain individuals who are receiving certain Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation.

    Simple Common Sense:
    The only time you actually do WANT to file is when the IRS says you don’t have to!They don’t do that because it’s good for you. They do it because it is more likely to be good for them. Certainly if you don’t have to file, NOTHING BAD, in fact only good things, can happen by doing so.

    hope this helps…


  2. Everyone is subject to taxation. the quantity of taxes you owe is predicated on your financial gain. you need to pay taxes throughout the year on a pay-as-you-go system. those that earn a lot of financial gain have higher tax rates than those that earn less, this implies tax rates get {progressively|increasingly|more and a lot of} higher the more you earn.

    You must file tax looking on what you earn

    Even if you are doing not have to be compelled to file, you must file to urge a reimbursement if Federal revenue enhancement was withheld from your pay, that if you were associate degree worker most actually happened otherwise you qualify for any of the following:

    Earned revenue enhancement Credit. The attained revenue enhancement Credit could be a federal revenue enhancement credit for eligible low-income staff. The credit reduces the quantity of tax a private owes, and will be came within the variety of a refund.

    Additional kid diminution. This credit could also be out there to you if you’ve got 3 or a lot of qualifying youngsters or if you’ve got one or 2 qualifying youngsters and attained financial gain that exceeds $ 11,300. the extra kid diminution could offer you a refund notwithstanding you are doing not owe any tax.

    Health Coverage diminution. restricted to sure people World Health Organization area unit receiving sure Trade Adjustment help, different Trade Adjustment help, or pension profit payments from the Pension profit warranty Corporation.

    Simple Common Sense:
    The only time you truly do wish to file is once the Internal Revenue Service says do not|you do not} have to!They don’t do this as a result of it’s smart for you. they are doing it as a result of it’s a lot of seemingly to be smart for them. actually if you do not have to be compelled to file, NOTHING unhealthy, indeed solely treats, will happen by doing therefore.



  3. Everyone having taxable income (in excess of Rs. 2.00 lacs) has to file his tax return even though the tax payable may become nil after considering 80C deductions, 80G donations and interest component in housing loan repayment. This is a legal requirement.





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