5 major advantages of ITR filing

An income tax return (ITR) filing is mandatory on individuals earning yearly income excess of the basic exemption limit of Rs 2.5 lakh. Even with no tax liability, ITR must be filed if the gross income is exceeding the exemption limit.

In an ITR form, the taxpayers declare details of their total income. This includes annual gross income, various deductions, and exemptions. Filing an ITR is mandatory to claim tax deductions under Section 80C, 80D, etc

Along with tax-compliant filing ITR offers a good range of benefits:

• Filing ITR Avoids Penalties

The main benefit of ITR filing is securing taxpayers from various penalties. For this Income Tax Department applied a penalty of Rs 10,000 under section 234F on individuals who do not file their due income tax return.

• Visa Processing

It’s an important part of your visa application process. The Embassies of various countries like the USA, Australia, United Kingdom, and Canada asked for ITR receipts of the past years. It’s an important aspect when it comes to establishing an approximate idea of an individual’s affordability.

Through this, the officials can assess your income and be confident enough that you are able to bear the expenses on your trip.

• ITR receipt Helps with Bank Loans

ITR receipt is a useful document when it comes to the bank loan process. It makes the loan process hassle-free and convenient. Most banks and NBFCs ask for ITR receipts for the last three years.

While applying for home loans or car loans. The sellers require ITR receipts as the most reliable document as proof of an individual’s income.

• ITR receipts are Multi-Purpose

ITR receipt is a highly important document to claim different types of income tax deductions. It’s recommended to preserve ITR receipts carefully. As they are important proof of your income, payment of your taxes, and detailed description of income from various sources.

• Cover the losses in the next financial year

The taxpayers need to settle down the losses of the current financial year in the same year. As it cannot be carried forward in the next year until an ITR is filed. The rule is applied by the income tax law.

That’s why it’s important to file your income tax return on time. As it will help you to claim the losses in future years.

Filing your ITR on time is beneficial in so many ways. It will also keep you away from tax complaints.

Due to the pandemic situation, the Financial Year 2020-21 has begun on 31 March 2021. There are some exceptions for certain categories like salaried taxpayers and others. Be a responsible citizen and file your taxes early for better convenience.

Get convenient ITR filing services with Inside Tax, for fast and most reliable Income tax return filing services in Delhi and other parts of India. They have helped many professionals and companies in tax filing and financial planning.