Why might someone with an income below the minimum threshold choose to file an Income Tax Return? Option: To claim tax refunds, To avoid late filing penalties, To demonstrate financial responsibility, To access government subsidies

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Why might someone with an income below the minimum threshold choose to file an Income Tax Return?

To claim tax refunds

To avoid late filing penalties

To demonstrate financial responsibility

To access government subsidies

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How can filing Income Tax Returns benefit individuals who have experienced financial losses?

It provides them with legal protection against financial audits

It allows them to claim refunds for past losses

It enables them to adjust for past losses in future tax calculations

It helps them avoid taxes on future income

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How does filing an ITR benefit individuals applying for high-coverage insurance policies?

"It exempts individuals from medical check-ups"

"It reduces insurance premiums"

"It provides proof of income to justify the coverage amount"

"It guarantees approval for high-coverage policies"

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What is the primary purpose of the standard deduction in tax filing?

Incentivizing charitable contributions

Promoting investments in retirement savings plans

Simplifying tax filing for those with few itemized deductions

Providing tax relief for low-income individuals

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What is the purpose of tax planning?

"To donate all income to charity"

"To maximize tax liability"

"To evade paying taxes"

"To fully utilize government benefits and comply with regulations"

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Why is it important to create an emergency fund?

"To avoid paying taxes"

"To cover unexpected expenses"

"To become wealthy quickly"

"To impress employers"