5 Benefits of Filing Income Tax Returns Online You Must Have Know, the method of filing income tax returns online (ITR) can become quite complex. If you don’t understand the implications of what you are filling in the form. So you need a professional consultant who can help to fill ITR form. Our tax consultancy services will guide you to furnish income tax returns online form without any mistake.
People whose annual income is in surplus of the basic exemption limit of Rs 2.5 lakh must obligatory file their income tax returns. Even when there is no tax liability, an income tax return (ITR) must be filed if the total income exceeds the above-mentioned threshold. Filing ITR not only saves you tax-compliant but also offers the following benefits.
1- ITR receipt is a very important document
You require to preserve ITR receipts carefully as they are a very important proof of your income and of payment of your taxes. It includes your total income details and has details of your income from other sources. It can be utilized for many purposes and now as you file your returns online. You can always download it from the E-filing portal of income tax sit.
2- Filing ITR evades penalties
Valid from FY 2017-18, the Income Tax Department levies a penalty of Rs 10,000 under section 234F on people who do not file their income tax return. Filing ITR on time shuns unnecessary penalties. Even though the penalty has been kept at Rs 1,000 if your annual income is not more than Rs 5 lakh, as a law-enduring citizen, it is your responsibility to file your tax returns.
3- Visa processing
Embassies of developed countries like the United States, United Kingdom, Canada, and Australia ask for ITR receipts of the past years to prepare your visa application. They are very careful about your tax compliance and hence, you are asked to provide past ITR receipts.
4- Compensate losses in the next financial year by claiming set off against income
People cannot carry forward losses of the current financial year to the next financial year until an ITR is filed. As per the income tax law, people are not permitted to carry forward losses and set them off against future years’ income. If the ITR is not filed within the due date. So, it is necessary to file your income tax return on time. In order to claim the losses in future years.
5- ITR receipt is a useful document for hassle-free processing of bank loans
Most banks and NBFCs ask for ITR receipts for the latest three years. When you apply for high-value loans like home and car loans. Bankers consider ITR as the most authentic document supporting an individual’s income. Hence, you should regularly file income tax returns online. If you are thinking to avail home or car loans in the future.