From getting a loan to visa to a higher credit limit: 8 ways filing income tax return may help you a great deal
The time for Income Tax Return has come - As soon as you know these 8 benefits, you will be in a hurry to file your tax return, hurry up so that you do not miss the opportunity.
Income Tax Return: The process of filing Income Tax Return for the year 2023-24 has started. The last date to file ITR is 31 July 2024. There are two types of people among those who do jobs. One with taxable income and the other with non-taxable income. Often people who do not fall in the tax bracket feel that there is no need to file Income Tax Return (ITR). But that's not the right to approach ITR. Even if you are not falling under the tax bracket, filing ITR may benefit you in 8 different ways.
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ITR is the biggest income proof
Taxpayers get an official certificate after filing ITR. The document certifies the person's salary i.e. their annual income. It is a registered proof of income that makes it easier to get credit cards and loans. It also helps in proving your credit history.
ITR also works as address proof
People file ITR online and offline. If you file it manually, the receipt is sent to your registered address. This receipt works as your address proof that you can use to apply for other government documents.
Tax return is necessary for Visa
You need a visa to travel abroad. The immigration department asks for your ITR when you apply for a visa. Visa authorities usually ask for ITR of 3 to 5 years. Through ITR, it is checked what is the financial status of the person who is coming to his country or wants to come.
Adjust stock or mutual fund losses from ITR
ITR is also a good resource for trading shares in the stock market or investing in mutual funds. In case of loss anywhere, the loss can be carried forward to the next year. But, for this, it is necessary to file ITR within the prescribed deadline. In case of capital gain in the next year, tax exemption can be availed by adjusting the loss against profit.
ITR is necessary for home loan or any loan
When you apply for a loan, the lender asks for your ITR to check income proof. In case of a home loan, ITR of 3 years is asked as income proof. Banks may also refuse you a loan if you haven't filed an ITR. If you file ITR regularly, your chances of getting a loan increase.
To get more insurance cover
If you want to get a high insurance plan or a term insurance plan of up to Rs 1 crore, insurance companies ask for your ITR. Through ITR, they check your source of income and repayment capacity.
ITR is necessary for business or contract
Even if you want to start a business, ITR is very important. ITR will be useful for getting contract from any government department. For that, it is necessary to show tax returns of the last 5 years.
If you want tax refund then fill ITR
Even if income of an employee doesn't come under tax slab, TDS is deducted for some reason or other. In such a situation, refund can be taken only by filing the return. To claim tax refund, ITR has to be filed. After the ITR is filed, the Income Tax Department assesses it before processing.