Income Tax Return creates a strong financial background as filing income tax return shows financial credibility of the assessee thereby assisting him for easy fund procurements in the form of loans for education , housing, vehicle etc from Banks / Financial Institutions
No 2. Benefit of Filing Income Tax Return :Save money by avoiding penalty
If your Income is in taxable slab than non filing of returns attracts a penalty with minimum Rs. 5,000 and interest under section 234A.
No 3. Benefit of Filing Income Tax Return :Save money by Setting of Losses
If in one year you have loss and you file your income tax return before due date,you can reduce your taxable income in forth coming years by the option of carrying forward and set off of losses on various heads of income as per the provisions of Income Tax act.
No 4. Benefit of Filing Income Tax Return :Claim Refund
If you don’t have taxable income but your TDS has been deducted by the employer/ banks etc, than you can claim refund by filing your Income Tax return.
No 5. Benefit of Filing Income Tax Return :Avoid scrutiny Notices
If you are regular filer of Income Tax return , than there are less chances that you will get notice from the income tax department in form of scrutiny notices / search and raids. etc
Income Tax department regularly sends the notices to those persons whose TDS has been deducted (even though person don’t have taxable income) but who do not file there income tax return .
Income tax department regularly collect the information about expenditure done by citizen of the country/persons/ Assessee’s from banks, financial institutions , mutual funds ,credit card agencies registrar of property etc . Than the Income tax department issues notices to these persons / Assessee’s to show there sources of Income. If the income is in taxable limit or souces of Income are unexplained than the income tax department imposes fine and penalties. Prosecutions are also launched against those persons.
No 5. Benefit of Filing Income Tax Return :Go in Foreign Country
Foreign travel is possible only through VISA and VISA is possible only through submission of IT returns as one of the documents. Immigration officers give due wheightage to your annual income . Absence of any single year income tax return can decrease your chances of foreign visa under visitor, investor or work permits category.
No 6. Benefit of Filing Income Tax Return : To take benefit from Govt
Income tax return is required to be filed for taking various benefits from govt e.g
- For obtaining Govt tenders by Contractors
- Registration on panels by Professionals
- For appointment in Judicial & Class one Jobs
No 7. Benefit of Filing Income Tax Return : To take Insurance Claim
Income tax return determines the financial earning capacity of the Individuals. It can help you in future in case of accidental death of any one member/’s during roadside accident , because during court trial insurance company need the proofs of income to arrive at the amount of accidental claim , if any return is missing , mainly last 3 years , this could lower the claim amount or even no claim because court take ITR as only evidence. No wealth record , FD’s , business etc is given that much importance as compared to ITR in the eyes of law .The formula for claim is by multiplying the Yearly income in ITR with years of expected life of deceased .