Income Tax Return is a document an individual is required to file with the Income Tax Department on a yearly basis. However, it is not mandatory for everyone to file the Return. If your income in the previous year is above the basic exemption limit of INR 2,50,000 (Rupees Two Lakh Fifty Thousand only), then you are required to file the Income Tax Return compulsorily.
Even though it is not mandatory for some persons to file the Income Tax Return, one should file it every year as there are many benefits of filing it.
Here are some of the major benefits of filing Income Tax Return:
Loans and credits:
In order to get a loan, one should have the Income Tax Returns for the last three years. All banks and lending institutions ask for a minimum of three years of Income Tax Returns to grant a loan to an individual. At the time of processing loan application, banks and lending institutions check the declared income and source to verify the repaying capacity of the individual seeking a loan. They use Income Tax Returns to verify the same.
In case you are seeking a personal loan, a home loan, or a car loan, it is essential for you to file Income Tax Return. If you regularly file Income Tax Return, you can get a loan from any bank or lending institution very easily. Even the banks prefer allotting credit cards to perons who file regular Income Tax Returns.
Easy to claim your TDS:
TDS means Tax Deducted at Source. It is a Tax deducted from your income by the person paying the salary or making any other payment on which TDS is applicable. The deductor while making the payment deducts the tax amount and pays it to the Income Tax department directly on your behalf.
You may get the tax amount so deducted by filing Income Tax Return. If there is no income tax amount payable at the time of filing the Income Tax Return, the whole TDS amount will be refunded.
If you are working as an employee in a company and earning less than Rs 2.5 lakh a year, you can claim your TDS from the Tax department. In case you are a businessman and want your TDS to get back in your account, it is mandatory to file an ITR every year.
For going out of country:
In order to apply for a VISA to visit any country, you need to have Income Tax Returns. While giving VISA, embassies officials check the income proofs and address proofs of an individual. Thus, Income Tax Returns are checked by the officials to verify the income and address. Therefore, if you are planning to go abroad, you must get your Income Tax Return filed immediately.
From the financial year 2017-18, Income Tax Return of a previous year can be filed in the same assessment year only. After the end of the assessment year, the Income Tax Return of the previous year cannot be filed.
Required for large insurance cover:
If you want to apply for an insurance cover of over INR 50,00,000 (Rupees Fifty lakh only), the insurance companies ask for Income Tax Return. The annual income and tax returns help insurers to determine the exact premium amount and security amount. Most of the times, Income Tax Return is a necessary document for buying an insurance cover.
Helps in executing financial transactions:
Income Tax Return is required in case of executing some financial transactions. Transactions or payments for house, car, mutual funds etc require Income Tax Returns. Some payments for big investments also need Income Tax Returns.
Income Tax Return works as an address proof in many government organisations and agencies. You can use it as an Address proof in place of unavailability of other documents.
Book your appointment NOW to file Income Tax Return.
Read more blogs: https://www.mrtax.in/article/
Our Channel Partner: Knovalt Corporate Advisors Private Limited, Web: http://knovalt.com/