If you still consider the Income Tax Return i.e. ITR filing as a formality, then this news is for you. Filing an ITR not only fulfills your legal responsibility, but it also gives you many benefits- whether it is tax saving or to make the process of taking loans easier. Let’s know 8 big benefits of filing ITR which any taxpayer must know.
It will be easy to get loan
According to AU Small Finance Bank, banks and financial institutions need to know your income stability while applying for a home loan, car loan or personal loan. In such a situation, the having three consecutive years of income tax return helps a lot in loan approval.
proof of income
ITR gives detailed details of your annual income and tax payment, so it is one of the most recognized income proofs. ITR is useful when the job, visa or any other need for income evidence is used.
Visa processing will be easy
If you are planning a trip abroad, then most of the embassies at the time of visa application ask for your ITR documents. With this, they are able to assess your income and tax status.
Tax refund claim
If you have paid more tax payments than your actual tax liability, then you can claim tax refund by filing ITR. After verification, the Income Tax Department directly deposits this amount in your bank account.
Compensation of losses due to loss in business
If there is a loss in trade in a financial year, you can file an ITR and take that loss forward in the next year. But this benefit will be available only when you file income tax returns on time.
Principal taxation scheme also benefited
Principal taxation scheme is a relief for their own employment individuals and professionals. Under this, you do not need to keep a regular balance sheet, ITR can be filed by declaring income at a fixed rate.
Penalty to fine
A fine can also be imposed by the Income Tax Department for not filling income tax returns on time. In such a situation, you can avoid such penalty and other legal problems by filing returns within the deadline fixed every year.
Tax deduction benefit on medical insurance
Under Section 80D of Income Tax, you can avail tax exemption on health insurance premium. This discount may be even greater for senior citizens. It is easy to claim with ITR filing.
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