Today I am going to tell you what are the benefits of filing income tax return.
Income up to Rs 5 lakh is tax free for the financial year 2020-21. Many people think that if the tax is not to be paid then what is the benefit of filling the Income Tax Return (ITR). But even if you are outside the tax net, the ITR should be filled. Filling of ITR not only gives you a refund of more tax paid, but it also has many benefits. In an annual year, the ITR is filled for the previous financial year. For example, in the annual year 2021-22, the ITR of the financial year 2020-21 will have to be filled. Know why filling the ITR is a good habit whether you come under the tax net or not.
From FY 2017-18, the Income Tax Department imposes a fine of Rs 10,000 under Section 234F on those who do not file their ITR even after coming under the tax net. Filing an ITR on time avoids penalties. If your annual income before any deduction not more than Rs 2.5 lakh, then you no need to file file a tax return. But if your earning before any deduction under chapter VI A is more than 2.5 lakh then you have to pay penalty .penalty very to 1000 to 10,000 depend on condition.
ITR receipt is an important document
Keep your ITR receipts safe because it is proof of your income and tax payment. This recipe contains a lot more information than Form 16. It contains information about your total income and other income.
Easy to get a bank loan
When you apply for a big home loan or a car loan, most banks and NBFCs ask you for the ITR receipts of the last 3 years. Lenders consider ITR Receipt as the most reliable income proof. If you are planning to take a home or car loan in future, then you should file ITR regularly.
Easy to get visa
Embassies from developed countries such as the US, UK, Canada and Australia ask for ITR receipts from previous years for grant of visas. This helps them to get an idea of your income and ensures that you can take care of the expenses on your trip.
Set off last year’s loss
You cannot carry forward this year’s loss for the next financial year until the ITR is filed. According to the Income Tax Law, if the ITR is not filed within the due date, then you will not be able to deduct the loss of this year from the benefits of the next year. It is necessary not to incur loss in future, so it is necessary to file ITR on time.