December 17, 2019

AZ Big Media

Crucial benefits of filing income tax returns in India

ITR, i.e., income tax returns, is a means to provide all the income details proclaimed by the raters along with the payable taxes. Under sections 80C to 80U, it is mandatory to file an ITR for any individual whose income exceeds the exemption threshold of 2.5 lakhs.

However, even if the gross income is below this limit, one is compelled to file an income tax return, especially if he’s a legatee of any possessions outside India. Besides this, one can avail of some beneficial advantages that come along with filing ITRs.

If you’re unaware of all the underlying aspects that show up while filing ITR, this guide will discuss these essentials.

Benefits as a significant document

The income tax receipt works as evidence of your total income credited through all the viable sources. Meanwhile, it gives the details regarding the clearance of your taxes. Thus, these permits must be kept safe and secured.

Filed ITRs can also help to claim refunds primarily if there comes a possibility of tax deducted at source(TDS). However, be mindful of the tax deduction payment while making a purchase.

To make a deposit, you can also opt for the TDS online payment option through the government portals. Make sure you’ve previously done your homework before getting along with the filing process.

Helpful in documentation and processing of bank loans

While applying for bank loans, the evaluation of your filed ITRs determines your eligibility and amount of credit for the loan. Most banks in India consider income tax return receipts as the most factual document.

It not only favors the individual’s income but also describes the paid taxes on all the revenues. Therefore, you must keep up with the filing of ITRs at regular intervals. However, you can also submit your details through ITR e-filing account registration to avoid any hassle. This plays an imperative role when it comes to securing a loan for numerous underlying reasons.

Redeem for the losses

According to the income tax law, one is not authorized to offset his losses of the financial year in the next fiscal year. This implies that even if you have experienced a loss, filing an ITR is crucial.

All in all, you can’t skip away with this protocol, alluding to the income lower than the exemption limit. Preferably, filing an ITR will enable you to claim for your loss and offset them in the coming year. This means ITR filing can’t be skipped, particularly when you’re trying to shape a new business firm.

Avoid heavy liabilities

For the individuals not documenting the ITRs, the income tax department, under section 234F, charges a penalty of Rs 10,000. Therefore, timely filing the ITRs save you from hefty penalties.

Although the sanction is held at Rs 1000 if you have your annual income less than 5 lakhs, as a citizen, it is your responsibility to abide by the laws. Make sure you’re proactive about this front when it comes to finalizing the registration process for ITR and proceeding with filing each year.

An important document for the Visa processing

For the successful processing of your visa application, most of the embassies need to actively confirm your tax submission. This is to validate your revenues and ensure whether you’ll be able to meet up the expenses on your journey.

Thus, preserve the ITR receipts as it can somewhat facilitate the entire visa processing while making it less cumbersome.

Regardless of the benefits, it comes to your duty to keep up with the updates regarding your credits and taxability.