17 Oct Benefits of Filing ITR on Professionals

To start, let us first determine the simplest indication of a self-employed professional.

     1. Person who derive personal income from their business.

     2. Person who derive personal income from the practice of their profession

Self-employed professionals are their own employee. They practice their profession to earn money; and by earning comes the responsibility of participating in paying taxes to the government. Filing of income tax return may sound bloody but there are also benefits that come with it aside from a clear conscience.

 1. Avail of Presumptive Tax Scheme

Under this principle, the government does not require small taxpayers to maintain book of accounts; contrarily, the scheme was made very easy to comply with whereby profits are presumed to be a certain percentage of the total sales.

 2. Claim Asset Depreciation

The benefit of claiming the depreciation of assets used for professional purposes may be declared as an expense on tax return thereby reducing the amount of the taxable income.

3. Avoid Legal Penalties

It’s simple, if you fail to file your income tax returns on time or don’t have any plans of filing it, you can face serious legal penalties which may break the bank. You are actually saving tons of money by being an honest and responsible taxpayer.

4. Procure Projects from the Government

Concise and punctual filing of your tax returns will create a good reputation for you. In fact, for example, if you are a contractor, it may serve as proof that you are eligible to perform work, provide supplies or erect projects for the government.

5. Future Loan

Your income tax depicts your financial health. When you plan to grow or expand your business, you may need to file a loan. One essential document you need to show your lender is your income tax return. This document will serve as basis whether you are capable of paying back or not. If you have been responsible of paying the right tax, financial institutions will most likely trust that you are a responsible payer.

We are Bliink. We are a team of highly qualified professionals who could help you comply with your taxes. We make sure that our clients keep their reputation intact by providing concise and on time reports.

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