Brief on tax benefits- WHY-file taxes? 

Filing tax returns is an annual activity which must be fulfilled as a moral and social obligation by every citizen of any nation. This is a means for the government to determine the amount and means of expenditure of the citizens and also provides a platform for the assessee to claim refunds and other forms of relief from taxation as is applicable at that point of time.
The government mandates a specified amount of income which requires to be filed as a tax return within a due date. The tax as applicable must be paid by the assessee, failure of which will invite interest and penalties from the IT department.
While most people are aware of the requirement of filing tax returns many are still unclear about the overall implications and repercussions of not filing returns on time.

WHO SHOULD file Income Tax Returns?

• From the Assessment 2012-13, it is mandatory to file your Income Tax Return if you have any foreign assets. Even though you may not have any taxable Income.
• The Central Board of Direct Taxes (CBDT) had exempted salaried employees having total income of up to Rs 5 lakh including income from other sources upto Rs 10,000 from the requirement of filing income tax return for assessment year 2011-12 and 2012-13, respectively. 
“The exemption was available only for the assessment years 2011-12 and 2012-13 ONLY”

WHY SHOULD I FILE MY INCOME TAX RETURN?

• The government has now in fact made it mandatory for all citizens to file returns whether or not they come under the taxable bracket.
• Filing returns makes it easier for individuals and firms to enter into subsequent transactions as the income they have shown is now in the knowledge of the tax department and the tax for the same has been paid as per-records.
• This also a means by which every citizen of the nation contributes to the progress and development of the nation. The money collected through taxes is the corpus from which the government undertakes welfare activities to improve the living conditions of the citizens.

BUSINESS & FINANCE PLANNING

• Prepare a business plan, cash flow projections, budgets, and trading forecasts.
• Assess your finance requirements, advise on the best sources of finance, and draw up the necessary proposals.
• Establish a good working relationship with your bank.
• Complete any registration procedures with Companies House or Customs and Excise.
• Payrolls Management - Customized pay slips, Administration of PAYE, national insurance, statutory sick pay, statutory maternity pay, etc. Completion of statutory forms, including yearend returns, to issue to your employees and submit to the Inland Revenue, Summaries and analyses of staff costs, Administration of incentive schemes, bonuses, and ex-gratia and termination payments, Administration of pension schemes.
• Conduct a feasibility study of your projects.
• Decide on the most suitable sources of finance - personal capital, bank overdraft, long-term commercial loans and mortgages, venture capital, or equity capital.
• Prepare the necessary business plan, forecasts, etc.
• Present your proposals to your chosen finance source.