Income Tax Return (ITR) filing is the process of declaring one’s income and taxes paid to the government. Income tax is a tax levied on individuals or organizations that arise from their income or profits.
The Income Tax Act 1961 governs the Income Tax in India. Income from salaries, business or profession, capital gains, and other sources are taxed under the Income Tax Act.
Different ITR forms are available for different categories of taxpayers.
Why ITR filing is so important
ITR filing is important because it helps the government keep track of an individual’s income and verify the taxes paid by them. It also helps in availing tax deductions and benefits offered by the government.
You must file an income tax return with no income. This is a way to prove your income to be used for Visa requests in the future, and it is useful when you apply for loans or other kinds of credit.
Also, if you’ve paid TDS even though your earnings are lower than the tax-deductible limit, you must file an ITR to claim a refund.
What happens if you’ve suffered losses in your day trading or investments in mutual funds?
You can also claim this if you submit an ITR.
If your earnings are less than 2.5LPA, you can make an ITR of zero and pay no tax.
Benefits of filing ITR
Income tax return filing not only helps you to comply with the law, but it also has several other benefits. For starters, it enables you to claim refunds on taxes paid.
Additionally, it helps to build a good credit history, which can come in handy when taking loans or applying for credit cards.
Finally, it gives you a better understanding of your financial situation and helps you to plan your taxes efficiently. Filing your ITR is quick and easy; the benefits far outweigh the costs.
There are many reasons why you should file your income tax returns.
Some top benefits include getting your hands on a tax refund, faster visa processing, buying a high life cover, and ease of getting loans.
In this blog post, we will discuss these benefits in detail and show why it is so important to file your ITR annually!
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One of the most important benefits of filing your income tax return is that it allows you to claim any tax refunds to which you may be entitled.
If you have overpaid your taxes, you can use your ITR to get a refund from the government. This is a great way to get some extra money back into your pocket!
Another benefit of filing an ITR is that it can help speed up the visa processing time. They will often require proof of income if you plan on traveling to another country.
An ITR can serve as this proof and make the visa application process much smoother and faster.
If you are looking to buy a high life insurance policy, then one of the things that the insurer will look at is your ITR.
This is because it provides them with proof of your earnings and helps to assess how much of a risk you are. If you have a good ITR, you will likely get a better life insurance policy at a lower premium.
Finally, your ITR can again be used as proof of income if you are looking to apply for a loan.
This is particularly important for self-employed individuals who may not have any other form of documentation to show their earnings.
A strong ITR can make getting approved for a loan much easier.
As you can see, filing your income tax return has many benefits. Whether you are looking to claim a refund or get a loan, your ITR can be a useful tool.
So make sure you file it every year!
There are many reasons why filing your income tax return is important. Some top benefits include getting your hands on a tax refund, faster visa processing, buying a high life cover, and ease of getting loans.
Suppose you are not able to file your income tax return on time. In that case, you can contact an income tax consultant as they help individuals or small companies file their income tax returns, and you can also use the Income Tax Return calculator to calculate your taxes.
Disclaimer – The above content is general and not for legal/professional advice. While the contributor has done proper research to ensure the content’s relevancy, however, the contributor shall be under no liability in any manner whatsoever for incorrect information/amendments in due course, if any.