If there’s one task that can easily make it to the top of the most overwhelming tasks for adults, filing income tax returns (ITR) wins hands down. After all, this yearly exercise that is expected to be fulfilled by every law abiding citizen is as complicated as it can get.
However, providing information about your yearly income and paying your taxes on time comes with a slew of benefits. Here’s a low-down on the same.
Firstly, filing ITR is an obligation by law so there’s no escaping that. This means, if you skip filing your ITR online, you are basically inviting hefty fines and penalties. So, it would be easier on your bank balance to always file returns within the deadline.
Salaried people receive payslips that work as their proof of income. However, if you are self-employed, an ITR receipt can act as your proof of income. On the plus side, this receipt is also accepted as a legitimate address proof.
Planning an international travel? The ITR receipt is proof of your income and will be checked to ensure you comply with taxes and are capable of meeting the travel expenses. So, filing ITR serves as a reason to get your visa approved faster.
Planning to apply for a loan to get your dream home? Well, diligent filing of ITR will ensure you can get easy loan approvals. The ITR receipt stands as your income proof and will help procure loans to meet your needs. There’s more. You can claim deductions on home loan interest if you file your returns.
If your business has incurred a loss this financial year, there’s nothing better than being able to carry forward your losses to subsequent years. In other words, your tax burden is lowered when you need it the most. If you file your ITR on time, you can very well get this option to temporarily compensate for the losses.
If you wish to undertake any government project or bid for tenders, it’s necessary to have a good ITR filing record. This can be factored in to check if you qualify for such applications. Thus, filing ITR is like ticking one of the checkboxes to ensure you can bid for the tender.
Sometimes a person may pass away without getting the opportunity to leave an inheritance deed. In such a scenario, one’s ITR acts as a record of all the assets owned during one’s lifetime. This ensures that the legal heirs can then distribute all the assets amongst them. However, none of this is possible if one does not pay tax or file ITR.
So, timely filing of ITR, apart from being a responsibility, is also beneficial in the long-term for every tax-payer.