ITR filing benefits: Five big benefits of Income Tax Return filing on time explained

ITR filing benefits: If your annual income is above Rs 2,50,000, it is mandatory for you to file annual Income Tax Return. While in case your annual income is less than this limit, you can still avail several benefits by filing the income tax return (ITR). Job holders and small businessmen need to file ITR, even when their annual income is less than Rs 2.5 lakh, to avail a bank loan. 

Here are the few benefits that an individual can avail after filling an ITR:

1. Essential for large insurance cover:

If you want to apply for an insurance cover of over Rs 50 lakh, the insurance companies ask for ITR. The annual income and tax returns help insurers to determine the exact premium amounts and security. Most of the times, ITR is a necessary document for buying insurance cover. 

2. Easy bank and credit loans:

All banks and credit lending institutions ask for a minimum, three years of ITRs to grant a loan to an individual. In case you are seeking a home loan, personal loan or a car loan, it is essential for you to file ITR. If you are a regular ITR filer, you can avail a loan from any bank easily. Even the companies preferably allot credit cards to people who file regular ITRs.  

3. Helps in doing financial transactions:

Many financial transactions require ITR. Transactions or payments for house, car, mutual funds etc require ITRs. Some payments for big investments also need ITR to be included as an essential and required document. 

4. Easy to claim your TDS:

If you are working as an employee in a company and earning less than Rs 2.5 lakh a year, you can claim your TDS from the Tax office. In case you are a businessman and want your TDS to get back in your account, it is mandatory to file an ITR every year. 

5. It is your address proof:

Income Tax Return works as an address proof in many government organisations and agencies. It can serve you the purpose at the time of visa applications as many countries seek an ITR as a mandatory qualification for a visa.