If you are planning to do job or business visit outside India, then for this visa will be required first. Documents related to ITR are asked while applying for visa.
Income Tax Return Filing: If you are an Indian citizen and your gross total income is more than the tax exemption limit, then you have to file your Income Tax Return. If your gross total income is less than the exemption limit, then it is not mandatory for you to file your ITR. If your taxable income is more than Rs 250,000 then you have to file ITR.
Apart from this, if your electricity consumption bill is more than Rs 1,00,000 on a yearly basis or you travel abroad for more than Rs 200,000 then you also need to file ITR. If your gross total income is less than the exemption limit, i.e. you do not come under the purview of income tax and still file returns, then it also has many benefits. Here we will tell you about these benefits.
Can claim for tax refund
If you want to claim for tax refund, then for this you have to file ITR. Even if you do not come under the income slab tax, TDS is deducted many times. If you want the TDS deducted money to be refunded to you, then it is necessary to file ITR for this. After filing ITR, if your refund is being made, then the Income Tax Department puts it in your bank account. Sudhakar Sethuraman, Partner, Deloitte India says, “By filing ITR online, one can claim refund of tax in the bank account of KYC-compliant individuals.”
ITR documents come in handy at many places
Documents related to Income Tax Returns come in handy while applying for different needs. For example, while applying for a loan, bankers ask for copies of your tax returns to verify your sources of income. Apart from availing loan, income tax return helps in the process of getting credit card, insurance policy etc. In this way it serves as a proof of your income.
Application for visa
If you are planning to do job or business visit outside India, then for this visa will be required first. Documents related to ITR are asked while applying for visa. It has been observed that some embassies in US, Canada, UK etc. look at the tax return records of the visa applicants. Through ITR, it is seen that what is the financial status of the person who is coming to their country.
Works as income proof.
People who have their own business do not have any proof of income like salaried persons. For such people, ITR acts as income proof with detailed details of income and expenditure. Those who have their own business can present these documents as their income proof. Salaried class get the benefit of Form 16, which is issued by their employer. It works as income proof for the individual.
Damage claim
Filing of tax return within the due date is necessary for an individual taxpayer to claim loss (loss of capital gains, loss from business or profession, etc.). Income tax rules allow carry-forward loss to be set off against capital gains only to those people who file ITR in the relevant assessment year. Sethuraman explained, “Filing of tax return not only enables the individual to claim for the loss, but it also serves as a document to track the loss that can be claimed in future. For example, an individual taxpayer who earns profit by selling mutual funds or equity shares can adjust these gains with losses incurred in the past by filing tax returns on time.”
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