10 reasons why you should file income tax

return

1. Smooth Loan Approval:

The major influential perk of filing of return to a private is that it enables a private to urge hassle-
free authorization . a private may in need of a home equity credit , car loan, commercial loan , or
consumer loan . Financial institutions always invite tax returns before approving and disbursing a
loan to work out the creditworthiness of a private . Thus, filing tax returns seems as a way of getting
finance from outside.

2. Establishing income proof:

The tax return may be a document that encompasses information just like the total income earned
during the fiscal year , total investments made, the entire expenditure incurred, net income earned,
fixed assets ownership, and so on. this type of data validates the income earned by a private . Thus
it’s demonstrating an individual’s financial position. The tax return is that the most authentic
document that proves your earnings.

3. Claim Tax Refund:

There are a number of the transactions during which the opposite person may have deducted TDS
on payment to be made towards you. In such cases, if your income doesn't exceed the essential
exemption limit or if your income doesn't get taxed thanks to other provisions of tax , then you're
eligible to require a refund of the TDS deducted on your payment. you'll get your tax refund only
after filing your tax return. Thus it becomes imperative for a private to file an tax return to say the
refund. In another scenario, the refund may arise if a private has paid more advance tax and
therefore the actual tax to be paid is a smaller amount than the advance tax already paid. One can
get the refund in whatsoever the scenario is merely by filing an tax return.

4. Expeditious Visa Processing:

The tax return is one among the important documents while applying for the visa. Many embassies
and consulates require copies of tax returns for the past two or three years. All those individuals
must file tax return who wants their children to review abroad or individuals who want to travel for
holidays in countries which needs a visa.

5. Avoid Penalty & extra interest:

In spite of getting taxable income, if you are doing not file the tax return within the prescribed
deadline then the tax officer may impose a penalty for non-filing of the tax return. tax officers may
impose interest on non-payment of taxes also. rather than affected by interest and penalties, it's
always good to file your ITR within deadlines .

6. Being a compliant citizen:

Complying with the laws and regulations formed by the govt causes you to a responsible and
compliant citizen. Everybody should contribute to nation-building by paying regular tax and filing the
tax return. It enhances the self-pride of a private and causes you to a trustworthy and mature
businessman.

7. mastercard Processing:
Financial institutions or banks check the credit worthiness of a private before issuing a mastercard .
The financial organization may insist a symbol of income before issuing the mastercard . The tax
return validates your income and causes you to eligible to possess a mastercard .

8. to shop for an policy with a better cover:

Insurance companies provide policies with high cover to those individuals who pays premiums
regularly and whose financial position is superlative. By the filing of tax returns, one can justify
himself during a position to urge high cover policies.

9. High-Value Investments:
High values transactions like purchasing high-value properties are being informed to the tax
department. If the tax department found any disagreement in your income and investment made,
then they'll issue a scrutiny notice seeking an indication of the source of income with which such
high-value investment is formed . Thus it becomes imperative to file an tax return with accurate
figures of incomes and investments.

10. to hold forwards the losses:

There could also be certain circumstances where the business has got to bear the losses, in such
cases the losses are often carried forward to subsequent year by the filing of return. The losses can't
be shown within the subsequent years to calculate the tax payable without the filing of the tax
return.