Benefits of filling ITR

Some people think why to file ITR with low income/ income not exceeding the specific limit, here are some cool 8 advantages to file the return without exceeding the income:

1. Refund of TDS:

Sometimes when 15 G and 15 H is not submitting to the bank, bank deduct TDS even the taxable income is not exceeding the prescribed limit, You need to file ITR to claim a refund of such TDS deducted by the bank.

2. Visa Processing:

Some Visa authorities of countries like the U.S., U.K, and Canada ask to deposit a copy of ITR returns to assess the income and tax compliances.

3. Credit Card Apply:

 In most of the cases, while applying for Credit Card, banks demand ITR returns.

4. Various Bank Loan:

Most banks and financial institutions, NBFC and other loan providers demand ITR returns when applying business loans, personal loan, and vehicle loans.

5. Carry forward of Losses:

In case a person incurred heavy losses in any assessment year, they have to file the income tax returns even when the total income not exceeding the specific limit to claim losses of the current year in the future assessment year.

6. Avoid Penalties or scrutiny of Income Tax return:

In case you miss income tax return on time, the penalty may range from Rs.1,000 to  Rs. 10,000 (as below)

Late Filing Fee (section 234F)
Filling Date Total income Below Rs 5,00,000 Total income Above Rs 5,00,000
upto due date Rs 0 Rs 0
till 31st December Rs 1,000 Rs 5,000
Between 1st January to 31st March Rs 1,000 Rs 10,000

7. High Cover Insurance Cover:

In case of buy of high cover insurance, insurance companies may demand ITR return copies.

8. Proof of Income:

Even when a person files ITR return without exceeding the limit, it is the valid income proof.

 

Priyansh Minocha

Priyansh Minocha is C.E.O and Director at Amonest India Private Limited and Founder at Casolutionsglobal

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