Income Tax Return
Filing income tax return in India is not just a legal obligation but also a beneficial exercise for individuals and entities.
Filing income tax returns is beneficial in many cases and not filing it can cause you great trouble on some occasions. So, without delay, login to the portal of the Income Tax Department and fill it up. Keep in mind that during the filing of online ITR, necessary documents such as PAN card, Aadhaar card, proof of bank account, proof of investment and Form 16 and Form 26AS will have to be kept.
Today we are going to tell you about the benefits of filing Income Tax return. You will be surprised to hear this, but it is true that there are many benefits of filing income tax returns. Of these, we are referring to some major advantages below, which can prove to be extremely beneficial for you.
- Convenient to take bank loan, credit card
While taking a loan, the bank or any financial institution is the first to look at your income. You are given a loan according to your financial capacity. In such a situation, the income tax return filed by you can come in handy. ITR can confirm your income. There are many financial institutions that give loans only on the basis of the information given in your ITR. Therefore, ITR can be helpful for taking a loan.
ITR can also be helpful if you want to make a credit card for your needs. Credit card-giving banks assess their ability to repay loans from the customer’s income tax return.
- Financial Transparency
Income tax returns serve as a documented record of an individual’s or entity’s financial transactions and earnings. This transparency is crucial for financial institutions, such as banks and lenders, while assessing creditworthiness for loans or other financial products.
- Required for TDS Claim
If someone has deducted tax on your earnings (tax deducted at source i.e. TDS), then it is necessary to file an ITR to get refund of TDS.
If you do freelancer or some work sitting from home and your income is not taxable, the one who pays you can still deduct the TDS. If the same is the case with you, then you can take a TDS refund by filing income tax return.
- Facility in getting visa
If you want to go abroad in connection with business or job, then ITR is necessary for you. Many foreign embassies ask for income tax returns for the last 2 years in visa applications. If you have an ITR, it is easier for you to get a visa than the other person.
- Proof of Income
The ITR forms contain details of all your incomes and expenses. On this basis Tax is calculated.
Thus, copy of the income tax return is a sure proof of your income.
- Compensation of loss (capital loss)
If you invest in the stock market and you suffer loss from the sale of shares then it is called capital loss. The advantage of filling the ITR on time is that you can adjust the loss from such gains in the future.
- Avoidance of Legal Hassles
Non-filing or incorrect filing of income tax returns can lead to legal complications, including fines, penalties, and even legal proceedings. By diligently filing returns within the stipulated deadlines and ensuring accuracy in reporting, taxpayers can steer clear of such hassles.
Filing income tax returns in India is not merely a bureaucratic formality but a proactive step towards financial prudence, compliance, and contribution to the nation’s development.
File your ITR easily and effortlessly with the expert assistance from Eazybahi Solutions.