Filing your income tax return every year is a mandatory process for each individual who has an income of at least 5 Lakh or above. As mandated by income tax deduction under section 80C and 80D, every individual who comes under aforementioned yearly income, is liable to submit the details of their income sources and taxes, earned and paid the current financial year.
But contrary to popular belief, income tax return filing isn’t only about submitting your sources of income, it also comes with various benefits. In this article, we explain 6 benefits that you can acquire right now for filing income tax on time.
While applying for a visa application, submitting your income tax return receipts will help your application get cleared much quicker, compared to not submitting any such documents. This is usually the case in some locations like Australia or the United States of America.
These countries will ask you to submit your income tax return receipts from the past financial years. The main reasons to ask for such receipts is the ease it offers while assessing your income sources and salary. Thi will help them understand that you have the capability of surviving on your own while in other countries.
Another great benefit of filing income tax returns online before your due date, is being able to get the refund much earlier compared to the people who file after you. For early refunds, it is recommended by a professional accountant to file ITR ahead of time. Further, since ITRr filing process offers an online procedure now, you do not have to wait for approval or worry about standing in long queues.
Filing income tax on time not only provides you with positive benefits but it also protects you from some penalties of not filing ITR. Filing on time will offer benefits and timely returns, while delaying your ITR filing will only invoke penalties from the income tax department. Further, you should know that fines will grow overtime if left unpaid.
Acts as Proof
Another major benefit of filing income tax returns is being able to use your ITR receipts as a proof for your income sources and your residential address. Without these receipts the overall process might turn out to be a hectic task. Since it’s difficult to gather all your income sources and your address documents at one go.
If you had any sort of losses in the current financial year and filed your income tax return before the due date, you will be eligible to carry forward your losses to the next financial year. Whereas, this wouldn’t be possible if you didn’t file them on time. Hence, making is a must to file ITR on time to claim your losses.
Finding a professional accountant to file your income tax return each financial year is a difficult task, since everyone else is looking for you for one as well. But if you choose to file your ITR earlier compared to others, the chances of finding a professional are significantly improved since there won’t be much competition.
Income tax return filing is not just a task that you have to do as an individual. Instead Income tax filing is a necessary commitment that you must carry for the benefits you and the country receive. Further, it can also help keep you tax compliant and ensures that you do not face any unnecessary penalties. Therefore, always file your ITR on time and use an online method for an overall better experience.