Income Tax Return is kind of declaration made by the assessee to the government in which an assessee declares the income earned by him from the various sources such as Income from salary, Income from house property, Income from business and profession, Income capital gain and Income from other sources.
Many people consider it as unnecessary burden. So, we have here listed down various benefits why you should file your Income Tax Return:
- Income becomeswhite moneyonce you declare the same in the Income Tax Return. Thus, you should file the ITR being responsible citizen and contributing in nation building.
- Foreign travelto those countries in which VISA is requireand VISA is possible only through submission of Income Tax returns as one of the documents.
- In case you incurredlosses in business income, capital gains, income from other sources, etc., then these can be carried forward to the next financial year and provide tax relief in the subsequent year only when filing the Income Tax returns. Unfortunately, such losses cannot be carried forward in case the ITR is filed after the due date.
- A tax assessment order can be used as a proof of residence for applying for Aadhaar or passport.
- Copies of tax returns are also required as proof for processing credit card applications.
- TDS is deducted from your income, and then the filing of income tax return is required to claim TDS.
- A salaried person has filed income tax return, and then he can claim additional deductions which are not considered by his employer while deducting tax deduction at source or not provide the original proof to the employer at the time of deduction of tax at source.
- From FY 2017-18 5,000 would be charged for non-filing of income tax return, a person who requires filing Income Tax Return as per section 139(1) of Income Tax Act.
- Life is uncertain; this is one of the rare benefit of filing the ITR every year. If you keep filing ITR of yourself or other, it can help you in future in case of accidental death of any one member during roadside accident, because during court trial insurance company need the proofs of income to arrive at the amount of accidental claim, if any return is missing, mainly last 2 to 3years, this could lower the claim amount or even no claim because court take ITR as evidence.
- For obtaining government tenders, registration on panels, etc. income tax returns are checked by the tender committee and ITRs are considered to see whether the applicant (contractor) has done the work of that much amount earlier or not.
- The return is a declaration of your income and it will be extremely helpful when you are applying for a loan from bank.
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(This blog is authored by Dhananjay Dubey)