Benefits of filing an income Tax Return

When the income of a person or a business exceeds a certain amount, tax is added to it.  

Every working Indian must fulfill this moral obligation. You must submit your tax returns on time each year in order to complete your duties as a citizen.

The majority of people frequently view filing income tax returns as a difficult task. A Chartered Accountants in Chandigarh can help you file your income tax returns without any unwanted problems.

Usually, people will record the income of the previous financial year by filing income tax returns.

Everyone in society, whether they are employed, part of a partnership, or a HUF, should file an ITR. For everyone to pay their taxes, they need to file their income tax returns.

Continue reading to know why it is good to file your ITR:

Can help you claim deductions

The government gives you certain deductions so that you might lessen the load on the taxpaying public and persuade more individuals to pay their taxes.

You can take advantage of these exemptions and deductions in some investments, which will help you pay less tax overall. TDS and rebates may be reclaimed as well.

You must file an income tax return, though, in order to take advantage of these tax breaks. You cannot make a deduction claim if your ITR has not been filed.

Important document while applying for loans

The bank will ask you to submit the necessary documents like the ones above when you go to apply for a loan.

Filing income tax helps you get a loan easily for a car or a new home for your family or your business.

Documents like your driver's license, your Aadhar card, your photo, your PAN card, and your ID, and sometimes more details may be required when applying for a loan.

Your income proof is one crucial document requested. In general, banks requested ITR for the previous three years.

The bank will use your past and current financial status to analyze if you can pay the offered loan money back.

ITR filing helps when buying loans, but that’s not all of it. It can come for help even when applying for credit cards.

Prior to providing you with a card, credit card issuers will also request your previous pay and tax returns.

Helps if you are planning to go abroad

There are formalities to be performed when traveling abroad. Your ability to go overseas may be hindered if your ITR is not filed.

ITR forms are one of the pieces of paperwork that are listed on the list of nations that you want to travel to.

The following reasons account for this:

a. Filing tax returns in the past strengthens your application and increases your chances of being granted a visa.

b. It informs the embassy in full of your financial position.

Final thoughts 

The Income Tax Act of 1961 created tax laws, and those laws still apply to everyone today. So according to it, if your income exceeds the said level, you must pay taxes.

Even if you miss only a specific part of the process, you can face a fine from the income tax department.

If you fail in Income Tax Return Filing in Chandigarh , a certain amount will be imposed as a fine by the income tax officer.

If you do not file returns, you can also face other severe penalties. You should file an ITR in order to avoid these fines and penalties.