Filing income tax returns offers the following benefits:
1. Filing ITR avoids penalties
Effective from FY 2017-18, the Income Tax Department levies a penalty of Rs 10,000 under section 234F on individuals who do not file their ITR.
2. ITR receipt is a very important document
You need to documents ITR receipts carefully as they are very important proof of your income and proof of payment of your taxes.
3. ITR receipt is a useful document for hassle-free processing of bank loans
Various banks and NBFCs ask for Income Tax Return receipts of the last three years when you apply for loans related with home and car etc.
Hence, you should regularly file ITR if you are planning to avail home or car loans in the future.
4. Visa processing
Embassies of developed countries ask for ITR receipts of the past years to process your visa application.
you are asked to furnish past ITR receipts.
This helps them assess your income and ensure that you are able to take care of the expenses on your trip.
5. Compensate losses in the next financial year
Individuals cannot carry forward losses of the current financial year to the next financial year until an ITR is filed. As per the income tax law, individuals are not allowed to carry forward losses and set them off against future years’ income if the ITR is not filed within the due date. Hence, it is important to file ITR on time in order to claim the losses in future years.
Filing ITR on time is beneficial in many ways while keeping you tax-compliant.
The e-filing season has begun for the FY 2018-19 and the due date is 31 July 2019.
Be a responsible citizen and file your taxes early to avoid the last-minute issues.