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Benefits of Filing ITR on Time

Introduction

Filing your Income Tax Return (ITR) on time is not just a legal obligation but also a financially wise decision. By filing your ITR on time, you can avail yourself of various benefits and avoid unnecessary penalties.

Let’s explore some of the key advantages of filing your ITR on time.

1. Easy Loan Approval

Filing your Income Tax Return (ITR) can be advantageous if you plan to apply for loans such as vehicle loans (for 2-wheelers or 4-wheelers) or home loans. Most reputable banks usually ask for a copy of your tax returns as evidence of your income statement. This is a mandatory requirement for loan approval.

2. Claim Tax Refund

Sometimes, tax may have been deducted (TDS) from your income, even if your total taxable income is below the basic exemption limit, or you have no tax liability for that year. If this has happened, it’s important to know that you can still claim a refund of the TDS by filing an Income Tax Return.

3. Income & Address Proof

Your Income Tax Return can be used as evidence of your income and residential address.

4. Quick Visa Processing

When you apply for a visa, the embassy or consultants usually require copies of your tax returns from the previous few years. These documents are mandatory requirements, so it is recommended that you file your ITR (Income Tax Return) on time.

5. Carry Forward of Losses

 If you file your income tax return by the original due date, you can carry forward any losses you incur to future years. This means that in those future years, you can offset those losses against your income, which will reduce the amount of tax you owe. However, if you don’t file a tax return, you won’t be able to take advantage of this benefit’s possible.

6. Avoid Penalty

If you fail to file your tax returns as required by the Income Tax Act, the tax officer may impose a penalty of up to Rs. 5,000.

7. For Buying Term Insurance

Insurance providers usually require applicants to submit their Income Tax Return (ITR) records as proof of their annual income to approve term insurance plans. The coverage amount is determined based on the individual’s earnings. Presenting the ITR helps insurance providers assess a person’s higher income level, which in turn helps in determining the coverage amount.

8. Claim refund of excess Tax Payments

Even if your income is below the taxable threshold, taxes may still be deducted from sources such as your salary, fixed deposit (FD), or other income. For instance, if your total income is less than Rs. 2.5 lakhs, but you received Rs. 1 lakh from an FD, the bank is mandated to deduct 10% tax on this amount. In such cases, individuals can claim a refund for the tax deducted by filing an Income Tax Return (ITR). In simpler terms, filing a tax return enables individuals to recover any tax deducted at the source.

9. Online ITR Filing

With the advancement of technology, filing your ITR has become easier than ever. Online ITR filing allows you to complete the entire process from the comfort of your home or office. This not only saves you time but also reduces the chances of errors in your tax return.

Importance of Expert Assistance

Filing your ITR correctly is crucial to avoid any legal complications or penalties. That’s where experts like CA Sakshi Agarwal come into play. With their knowledge and experience, they can help you navigate through the complexities of tax laws and ensure that your ITR is filed accurately and on time.

Reviews and Testimonials

Industry experts like CA Sakshi Agarwal have a wealth of knowledge and experience in tax matters. Their reviews and testimonials can provide valuable insights into the benefits of filing ITR on time and the importance of expert assistance.

Call to Action

Now that you know the benefits of filing your ITR on time, it’s time to take action. Don’t wait until the last minute; file your ITR today and enjoy the peace of mind that comes with being tax-compliant.

FAQs

Q: What is the deadline for filing ITR?

A: The deadline for filing ITR varies depending on the type of taxpayer and the financial year. It is usually July 31st for individuals and September 30th for businesses.

Q: Can I file my ITR online?

A: Yes, you can file your ITR online through the Income Tax Department’s official website or using third-party platforms.

Q: List of all the necessary documents needed to file an Income Tax Return (ITR)?

A: You will need your PAN card, Aadhar card, bank statements, Form 16 (if applicable), and details of your income and expenses.

Q: What happens if I don’t file my ITR on time?

A: If you fail to file your ITR on time, you may be subject to penalties and interest on the amount of tax due.

Q: Can I get professional help to file my ITR?

A: Yes, you can seek the assistance of tax professionals like CA Sakshi Agarwal to help you file your ITR accurately and on time.

Conclusion

Filing your ITR on time is not just a legal obligation but also a financially wise decision. By availing yourself of various benefits like income tax refunds, online filing, and expert assistance, you can ensure that your tax affairs are in order and avoid any unnecessary penalties.

Noida based , our company CA on Web can be best suited for all your Tax related issues . Connect & avail services now.

Contact Us! +91-1204231116, 98014443206
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