Income Tax Returns: The process of filing Income Tax Return (ITR) for the year 2020-21 is going on. There are also many people in the employed, whose salary does not come in the tax bracket or even if it comes, then they feel that there is no need to fill ITR. Just thinking like this is wrong. Irrespective of whether you come under the purview of Income Tax or not, but you must file a return. It has many advantages. Let us know about 8 such benefits.
ITR is necessary for Visa
Visa is required before traveling to another country. While applying for a visa, you are asked for an income tax return. Visa authorities can ask for ITR for 3 to 5 years. Through ITR, it is checked that what is the financial status of the person who is coming or wants to come to their country. That’s why ITR must be filled.
ITR is the most important income proof
Taxpayers get a certificate on the filing of income tax return. This is a government proof, which shows the annual income of the person. Having a registered proof of income helps in proving credit card, loan or own credit.
ITR has to be filled if you want tax refund
Many times the income of the salaried person does not come under the purview of slab tax, yet TDS is deducted due to some reason. In such a situation, if you want a refund, then it is necessary to file ITR. ITR has to be filed to claim tax refund. After the ITR is filed, the Income Tax Department does its assessment. If your refund is being made, then the department processes it and puts it in your registered bank account.
Get loan easily
The proof of your income is also seen while taking the loan. Especially in the case of home loan, ITR is asked for up to three years as income proof. This is applicable in all government and non-government banks. If you apply for a loan without ITR, then banks can also refuse it. If you file ITR regularly, your chances of getting a loan increase.
ITR is necessary to start a business
It is very important to file income tax return even for starting a business. If you want to get contract from any department then ITR will come in handy. ITR for the last 5 years is also necessary for taking a contract in any government department.
Insurance cover is necessary even if you want more
Insurance companies see ITR on the condition of having more insurance cover or on term plans up to Rs 1 crore. Companies ask for ITR to check the source of income and repayment status.
ITR is address proof
The receipt of income tax return is sent to the registered address when filled manually. With this it is also accepted as an address. ITR is also a proof of income.
Necessary to carry forward losses in shares
ITR is also a good resource for those investing in shares or mutual funds. In case of loss, it is necessary to file income tax return within the prescribed deadline to carry forward the loss to the next year. If there is a capital gain in the next year, the loss will be adjusted against the profit and you get the benefit in tax exemption.
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