The economy of a country sits calmly upon the system of collecting money from people in the form of tax. Tax is the fee government imposes on its people, institutions and establishment for the consumption of products, income and services.
Why Is Tax Important?
The revenue collected is used to run government machinery, developmental projects, roads, bridges, schools, health facilities and national security. Taxes must be as widespread as possible over different sections of population and sectors of economy.
Benefits of Filing Your Tax Returns
It is important to file your tax returns for several reasons:
Proof of responsibility: Many service providers, employers and real estate businesses, often asks people about their income tax return on time as a proof.
Proof of security for international travel: Many countries ask to show the details of income tax file returns before issuing a visa and immigration process.
Avail financial facilities: Many financial institutions wants you to furnish your income tax file returns before granting you a short term or a long term capital for home or business loan.
Claim reimbursements/ insurances: The benefit of filing returns on time is you can demand a right for the adjustments on some damage in business or property.
Security against legal penalties: Taxes are applied on the assets people own. If they do not pay taxes in the form of income and property, they have to face legal penalties.
Fulfil your civic duty: Filing your tax return is considered a civic duty. It is compulsory for a responsible citizen to fulfil the requirements of the law of a country.
There are other benefits you gain too if you regularly file your tax returns. To guide you in a better way, experts at Medina income tax services are always available.