Any amount that is in excess to the basic exemption amount, is said to be the income for which we have to file an ITR. India is a country where people commonly demoralize each other when it comes to ITR filing as they are unaware of the advantages they get post filing the ITR. The Income Tax Department has come up with the process of e-filing of the ITR so that it can bring an ease to their lives.
Let’s have a glance at the best benefits of filing ITR with in the stipulated time :
- Loan Approval Without Nuisance: The primary advantage you get from Income Tax Return filing is if you apply for home-loan or any other kind of loan , it will be approved as early as possible. One of the basic necessities that any major bank asks for is a copy of income tax return before granting you the loan.Ultimately, ITR filing is important as well as it is not a complicated process in today’s era. ITR helps you to keep the exact report of your income in any annual year so that if needed you can show that as a proof too.
- Any Losses if occurs can be carried forward – If any individual suffers loss in his business both short or long term losses, either speculative or non-speculative or any other type of losses ,if not mentioned in the ITR can’t be carried forward against the capital gains in the same year . As losses can be set off with the gains if genuine (under different exemptions given by the income tax department) So, in absence of ITR these benefits of exemption can’t be given to any person in subsequent years.
- Refund – In few cases of TDS , Advance tax or self assessment tax people tend to pay more amount of tax than the actual . So, 100% amount in case of TDS and all the extra tax amount which is being paid can be refunded by filing ITR. The income tax act states that if a person files the ITR in the relevant assessment year by July 31 he can claim for the refund of the excessive amount of tax paid by him.
- Avoidance of tax – If you don’t file your ITR you will be liable to pay an amount of Rs. 10000 in addition to extra interest charged by income tax department and If you file your ITR make sure you do it before the last date decided by the income tax department so that you can avoid any legal charges that are levied by income tax department.
- Income as well as a proof for address – Income Tax Return being a government authorized document can be used as proof of your income and address. It’s a valid proof of your income which is acceptable by all the departments public or private and in absence of any other address proof income tax return can be used to show it as an address proof.
- Quick processing of visa – Nowadays consultants and embassies demand for ITR of the past couple of years at the time of the application for visa.
- Credit-card processing – Any bank can reject your application in the absence of ITR as it shows your financial condition i.e whether you will be able to pay the credited amount back to the bank or not.
- For High-level Life insurance – If you want to cover your life under a life insurance of 50lakh or more you need to provide your receipts of ITR as it shows your exact financial condition and the company knows that you are well off to pay your instalments every now and then. Even, If you are planning to start a new business or thinking of fill any government tender you need to have the receipts of your previous year’s ITR as that will let them know that you have enough funds that in case of losses or no profit you will still have a stable condition
Okay ! So since you have understood that ITR filing is really important for our lives, I hope you won’t evade it, right ?
As ITR filing can be really helpful to you from sanction of different loans to prevention from extra interest and charges which can be levied by the Income tax department.
Founder & CEO| Fox Investor & A.V.A. Taxway Associates- Corporate & Tax Law Firm
Viibhor Agarwal is a Business & Brand Consultant as well as he is a Financial Expert his area of specialization is to guide Entrepreneur, Start-up’s and SME’s to build the brand value of business financially & legally. He has 8 year extensive experience in this sector