Income Tax Return(ITR) Filing.
Income Tax Return(ITR) is a form that contains a person’s income and taxes paid in a particular financial year. The financial year starts on 1st April and ends on 31st March of the following year.
It also supports the proof of income earned and taxes paid by you. Recommended filing ITR even though the taxable income falls below the basic exemption threshold limit.
Benefits of filing ITR.
The benefits of filing ITR are listed below.
For Loan Approval.
ITR is an essential document when you apply for a loan, whether it is a vehicle loan, home loan, or personal loan. Banks ask for the past three years to know about your income stability. Most banks consider ITR even for issuing credit cards. It is a prime factor in the fast sanction of loans in addition to the CIBIL score.
Quick visa processing.
If you apply for a Visa, you should submit the past three years’ ITR copy to the embassy or the consultant for quick visa processing. ITR indicates your assurance of income and your ability on managing expenses on the trip.
Claim Tax Refund.
One of the greatest benefits of filing ITR is getting a tax refund. Investments in tax saving schemes, more taxes paid, and if you are liable to claim. Then you can claim the tax refund by filing ITR. Rebate also available if done within the due date.
Carry Forward Losses.
Taxpayers can carry forward the losses to the next year. iI ITR filed within the due date. Else it will not carry forward.
To avoid penalty.
If you are liable to file ITR, but you didn’t. Then tax officer has the right to impose a penalty of up to Rs 10,000.
Income and Address Proof.
ITR receipt serves not only as income proof but also as address proof. Suppose you need to apply for a loan, but proper address proof is not available to you. In that case, ITR saves you by serving as an address proof.
Many people think that if income exceeds the tax exemptions limit means only they can file ITR. But it is advisable to file ITR once you start earning by getting into a job or doing a business.
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