Introduction
In India, filing an income tax return is required and not optional. You should be aware of its numerous advantages and benefits. Recording your return can assist you with asserting discounts, conveying forward misfortunes, avoiding punishments and interest, and demonstrating your pay and financial soundness. Additionally, it can assist you in being a responsible citizen and contributing to the nation’s growth. Online platforms and services make e filing of income tax return in India simple and convenient.
As an upright citizen, you must submit your taxes on time yearly. Every working Indian has a moral obligation to do this. Filing ITR might also be beneficial to you. Here are some of the ways that submitting an income tax return might help you.
Reasons for Filing a Tax Return
Here are a few reasons why you should file your income tax returns.
● It Facilitates Loan Processing
Assume you wish to apply for a house loan (other than a mortgage). Before authorizing a loan, a lender would usually need evidence of income. You must submit your income tax returns for the previous two or three fiscal years as part of the procedure.
● It Can Assist to Claim Adjustment Against Past Losses
Timely e-filing of income tax returns provides several benefits, regardless of whether you earn the required income to file returns.
Many losses incurred by a business or individual, both non-speculative and speculative, long-term and short-term capital losses, and various other losses not recorded in a tax return in a fiscal year, can’t be presented for exemption in subsequent years for tax calculation. So submitting returns frequently is advisable since you never know when you’ll need to claim an Adjustment of Status Through Marriage for prior losses.
● It Enables You to Get TDS Refunds
If your employee deducts tax at source or you have a contractual arrangement that requires TDS, you may claim a deduction for it by ITR tax filing for the year before the deadline (as declared for the following year). In such circumstances, the income tax agency computes your net tax due after deducting TDS. You can follow your refund by checking the status of your income tax return.
● Your Loan or Credit Card Provider May Want to View Your Return
If you want to apply for a home loan in the future, maintain a consistent record of the returns, as the home loan company will need it. You might also consider uploading your spouse’s papers for consideration for a co-borrower loan. Similarly, credit card providers may need documentation of return before granting a card.
Before trading with you, financial institutions may want to examine your results over the last several years. The government may make it essential for them to do so, thus pressuring people to submit returns before the last date for filing ITR regularly, even if it is optional.
● It Helps in Nation Building
Any tax you pay contributes to the development of your country. It is a significant contribution to the government’s financial influx. The government collected 9.45 lakh crore in direct taxes in FY19. The money might be used to improve infrastructure or for other development purposes by the government.
● It Demonstrates That You are Accountable
The government requires individuals who make a certain amount of yearly income to submit a tax return by a deadline. The person must pay the computed tax. Failure to pay tax will result in fines imposed by the Income Tax Department.
Those people whoa are earning less than the required income threshold may submit returns voluntarily. Filing taxes demonstrates that you are accountable. Not only that, but it also makes it simpler for people and enterprises to participate in future transactions since the tax department has recorded their revenue and any appropriate tax has been paid.
Conclusion
Filing an income tax return in India is a legal requirement and a wise financial move. You may recover refunds, carry forward losses, avoid fines and interest, and verify your income and creditworthiness by submitting your return. Furthermore, you may contribute to the nation’s progress while feeling good about yourself as a responsible citizen. Because of the internet platforms and services accessible, e-filing of income tax returns in India is simple. So don’t put it off any longer; submit your return immediately. You’ll be happy you did!
