10 reasons why you should file income tax return

 

1. Smooth Loan Approval:

The major influential perk of filing of return to a private is that it enables a private to urge hassle-free authorization . a private may in need of a home equity credit , car loan, commercial loan , or consumer loan . Financial institutions always invite tax returns before approving and disbursing a loan to work out the creditworthiness of a private . Thus, filing income tax returns turns out as a means of getting finance from outside.

 2. Establishing income proof:

The tax return may be a document that encompasses information just like the total income earned during the fiscal year , total investments made, the entire expenditure incurred, net income earned, fixed assets ownership, and so on. this type of data validates the income earned by a private . Thus it’s demonstrating an individual’s financial position. The tax return is that the most authentic document that proves your earnings.

 

 3. Claim Tax Refund:

There are a number of the transactions during which the opposite person may have deducted TDS on payment to be made towards you. In such cases, if your income doesn't exceed the essential exemption limit or if your income doesn't get taxed thanks to other provisions of tax , then you're eligible to require a refund of the TDS deducted on your payment. you'll get your tax refund only after filing your tax return. Thus it becomes imperative for a private to file an tax return to say the refund. In another scenario, the refund may arise if a private has paid more advance tax and therefore the actual tax to be paid is a smaller amount than the advance tax already paid. One can get the refund in whatsoever the scenario is merely by filing an tax return.

 

 4. Expeditious Visa Processing:

The tax return is one among the important documents while applying for the visa. Many embassies and consulates require copies of tax returns for the past two or three years. All those individuals must file tax return who wants their children to review abroad or individuals who want to travel for holidays in countries which needs a visa.

 

 5. Avoid Penalty & extra interest:

In spite of getting taxable income, if you are doing not file the tax return within the prescribed deadline then the tax officer may impose a penalty for non-filing of the tax return. tax officers may impose interest on non-payment of taxes also. rather than affected by interest and penalties, it's always good to file your ITR within deadlines .

 

 6. Being a compliant citizen:

Complying with the laws and regulations formed by the govt causes you to a responsible and compliant citizen. Everybody should contribute to nation-building by paying regular tax and filing the tax return. It enhances the self-pride of a private and causes you to a trustworthy and mature businessman.

 

 7. Mastercard Processing:

Financial institutions or banks check the credit worthiness of a private before issuing a mastercard . The financial organization may insist a symbol of income before issuing the mastercard . The tax return validates your income and causes you to eligible to possess a mastercard .

 

 8. To shop for an policy with a better cover:

Insurance companies provide policies with high cover to those individuals who pays premiums regularly and whose financial position is superlative. By the filing of tax returns, one can justify himself during a position to urge high cover policies.

 

 9. High-Value Investments:

High values transactions like purchasing high-value properties are being informed to the tax department. If the tax department found any disagreement in your income and investment made, then they'll issue a scrutiny notice seeking an indication of the source of income with which such high-value investment is formed . Thus it becomes imperative to file an tax return with accurate figures of incomes and investments.

 

 10. To hold forwards the losses:

There could also be certain circumstances where the business has got to bear the losses, in such cases the losses are often carried forward to subsequent year by the filing of return. The losses can't be shown within the subsequent years to calculate the tax payable without the filing of the tax return.