It is mandatory to file income tax returns if an individual has a gross salary of more than 2.5 lakhs. Even if they don’t have any liability, Income Tax Return Filing is still recommended if that person’s total salary per annum exceeds the limit mentioned above.
All the taxpayers have to declare all the details of their income and deductions on their salary and taxes, that are required be paid by them. As per the section 80C, 80D everyone who comes under the details mentioned above has to go through Income Tax Filing.
There are a lot of benefits if you file your ITR, let’s have a look at them:
1. Easy Loan Approval
ITR filing can help you with easily apply for loans for a vehicle, both two-wheeler and four-wheeler, or allows them to apply for home loans. Every big bank will ask for the copy of the ITR filing you have done.
This is because most of the lenders consider income tax return as an authentic proof for the individual’s gross income. This is why you should always file your tax return if you ever plan to get a loan for your new home or a new car in future.
2. Claim Tax Refund
In order to get any kind of refund that the income tax department has, you’ll have to first apply for Income tax return. Once you are done with ITR filing you can claim the refund.
3. Income & Address Proof
Every time you file for an income tax return, that document can be used as your address proof as well as your salary proof.
4. Quick Visa Processing
If you want to get your visa application approved, one the things you’ll have to show to the embassies is your income tax returns that you filed. Countries like the United States and Australia are among the ones who ask for your income tax return receipts of the past few years.
This will help them assess your salary and ensure that you are capable of carrying out all the expenses on the trip.
5. Carry Forward Your Losses
Another benefit of filing income tax return before or within the due date, you’ll be able to carry forward your losses to next year. These losses can then be used to set off against your salary of next year.
If you haven’t filed your income tax return, you cannot carry forward that years losses to next financial year. This is why it’s important that you file your income tax return in time if you want to claim any losses for the next years.
6. Avoid Penalty
The income tax department has made it mandatory for people to file their tax returns, effective from the financial year 2017-2018. Under section 234F, each individual will have to pay a penalty of Rs. 10,000 if they fail to do so. If an individual has filed their income tax return, they can avoid a lot of unnecessary penalties.
7. ITR Receipt Is Important
Every income tax return receipt that you’ll receive, you’ll have to keep it safe with yourself as these receipts are proof of your income and the tax return you filed.
The receipt has more details when compared to Form 16. Not only it has details of your total income but it contains details of any outside source of incomes.
8. Early Filers Equals Less Competition
If you have been paying taxes for some time, you’ll understand by now that if you file your tax returns early, then you might find a professional pretty easily since there won’t be a lot of competition. You have to set an appointment with a tax professional before the middle of the march, if you haven’t done it by then, you’ll have to apply for an extension in most of the cases.
As the return filing deadlines approach, these tax professionals will charge you way more than what they would if you file early. The best method is to set up a meeting with your advisor early and be done with your returns before you have to face any of this.
9. Convenience
When you are filing for your taxes online, you don’t have to find any specific location to do that task, but with the help of E-filing, you can do this anytime you want since its available 24/7 which makes it really convenient.
Conclusion
There are a lot of benefits of filing the income tax return in time and it keeps you tax complaint. The E-filing of ITR has changed a lot of things, made things much easier and convenient. You have to be a responsible citizen and file your income tax returns in time. This is the best way to avoid all the hassle of late payments and have all these benefits that we mentioned above.
