The benefit of filing an income tax returns – If the assessee has below exemption limit

The benefit of filing an income tax returns – If the assessee has below exemption limit

benefit of filing income tax return,
 

Most millenniums think that if their salary falls below taxable brackets, they do not file ITR (Income Tax Returns). However, that’s not right. There is a need to file tax returns after they enter a job and start earning. When investing in mutual funds, stock markets, real estate you may gain or loss. This loss you can cover next year. Thus, Filing ITR has many benefits.

Benefits of filing Income Tax Returns

 For Hassle-free Visa Procedure:

Income tax returns file required when applying the process of visa for USA, Canada, U.k. At the time of processing, visa authorities ask for copies of last one year ITR.

Carry forward losses in the next financial year

If assessee will file the returns within due date, be able to to get carry forward losses to subsequent years, which can be used to set off against income of forthcoming year. As per the income tax provisions, If tax returns do not file within the time, Unadjusted losses cannot be carry forward to next years. So if you want to carry forward your lose, require to file a tax return.

Claim tax refund

If the assessee has a refund due from the Income Tax Department, The assessee has to file an Income tax returns to claim the refund. When employed, the Employer will deduct TDS on your income. However, If the investment made by the assessee is tax deductible. Therefore TDS deducted can be refunded only after you file returns.

AS Income and Address proof

ITR can be used as proof of your income and address. For an example open a current account in a bank 

To help easy bank loan documentation  procedure

Being an energetic income tax filer makes it easy to evaluate your source of income when applying for loans such as auto loans, home loans, etc. for banks. Bank usually ask for copies of income tax returns filed for the previous 2-3 years at the time of applying. Thus bank checks the income capacity of the individuals.  

Avoid penalties or scrutiny from the tax department

If the assessee is required to file a tax return but didn’t, As per income tax regulation FY 2017-18 Rs 10,000 would be levied for non-filling of Income Tax Returns. 

Helpful Freelancer and independent professionals

Independent professionals, self-employed people or Freelancer don’t have Form -16. So this is the only document they have to show that filed the ITR. In the future, they may face funding issue and transactional issue. 
 

Credit card procedure

For credit card processing you have to require income document. In some cases, your credit card application rejected because haven’t filed ITR.

 

Related to this topic:
E-filing your income tax with easy steps
Income Tax Deductions and Exemptions for F.Y 2018-19
What is TDS (Tax Deducted at Source)?

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