1. Easy Loan Approval:

Filing income tax (ITR) will help every person. As when they need to apply for any type of loan. Like, vehicle loan(2-wheel or 4-wheel), house loan, Business loan, or any type of loan. Most banks and NBFCs have require ITR receipts of the past three years for  big loans. The lender believes that ITR is the most authentic document to prove personal income. Therefore, it is necessary to file income tax returns regularly. If you are planning to apply for home or car loans in future.
Must Read: How to Fill Income Tax Return

All banks can ask for a copy of Income tax returns. As filing ITR on time makes your good image in front of the bank. and also in front of the Income-tax department. It is also considered as an income proof in front of different departments of our country. Like in public and private departments ITR is the proof of your income. All banks require your past year’s ITR before they confirm loans. It helps to establish good financial status in their eyes.

If you don’t fill ITR. or don’t pay ITR bills at the given time and date. Then, loan processing by banks becomes difficult for you. And it can also happen that the bank will not give you any loan. Even if it is a small amount of loan. While if you have filled ITR bills at the proper time and date. Then the bank will easily assign you any kind of loan. And the bank also co-operates with you. That means, if you need a large amount of loan then by showing a copy of ITR, the bank helps you to easily and quickly get the loans.

2. Claim Tax Refund:

There are various instances during a financial year during which there has been tax deducted at source (TDS) on investment. So as to say TDS refund, one will need to file the ITR to say refund of an equal. If you want a refund from the income tax department, you must file a tax return to request a refund. When you pay income tax, you usually get a refund. This is because our total accrued tax is less than TDS and prepaid tax (if any).

However, if you do not file a tax return, the tax office will not refund your money. Do you feel bad now? In addition, you may lose the opportunity to earn refund interest income (applies if your IT department does not pay the refund within 45 days from the date of confirmation of the e-commerce refund). Not even that, your ITR can also be taken up for inspection which can be a very long & painful process for you.

used as an income & address proof:

It is also considered as income proof in front of different departments of our country. Like in public and private departments ITR is the proof of your income. It is considered as a government proof of income and address. There it is considered an important document. And any company or organization considers it a true document. As, it contains a lot of details about your income. like, your total income details and has details of your income from other sources and also verifies that your income sources are legal.

Quick Visa Processing:

If you are planning to travel abroad on vacation or work, you need to know this. When applying for a visa, the embassy can demand for ITR of the last three years. As, the embassies in developed countries such as the United States, the United Kingdom, Canada and Australia have required ITR receipts to process visa applications.

They are very specific about your tax submission. and therefore, you are asked to submit past ITR receipts. This can help them access your income and ensure that you can pay for the trip. It helps the country you are visiting to set your financial status before giving you a visa. According to the embassy’s rules, the person who does not have ITR is not allowed to visit abroad on a business or vacation basis.

Carry Forward Your Losses:

If you apply for a return before the due date, you can carry forward losses to next years. that can be used to set off against next year’s income. Before applying for ITR, individuals do not suffer losses from the current financial year to the next financial year until an ITR is filed. Under the Income Tax Act, if the ITR is not filed in time, the individual will not be able to explain the loss and cannot compensate for the income in subsequent years. Therefore, it is important to submit your tax return in time to claim the losses in future years.

Avoid fines:

If you have to file a tax return but do not have filed. then, the tax officer has the right to impose a fine of up to 5,000 rupees. Therefore, filling ITR also saves you from this penalty. Once you are declared as a defaulter by an ITR officer. It can create a big problem for you. As it is considered as an important document for income and address.

Fault declaration in it can harm you more. And can lower your business reputation. Thus filling ITR saves you from these problems. Hopefully, you have understood the benefits of filling Income tax(ITR). So, we recommend you, that if you want to establish any organization or you own an organization. then filling the ITR can help you a lot. and is necessary for you.