Individuals whose basic income is more of the basic limit which is 2.5 lakhs, have to file the Income Tax Return(ITR). Peoples used to think that they have to pay the tax and that is the big problem. But, they need to know that there are so many Benefits Of ITR Filing. So, here we are with the new post of Benefits Of ITR Filing That You Need To Know in 2020.
‘Income Tax Return’ is a form in which taxpayers share the details of their income, deductions, exemptions, and the taxes that they have to pay on their excess income.
Filing of the ITR is very important to reduce your tax under Section 80C, 80D, etc. and the other benefits like long term capital gain exemption. Through this, a day will come when your income tax will become zero.
The filing of the ITR not only saves you from the penalty but also offers the benefits of ITR filing mentioned below.
Benefits Of ITR Filing
1. Filing ITR Saves You From Penalties
This rule came to effect from the year 2017-2018. Under this, the Income Tax Department can charge you a penalty of 1000 under Section 234F on the individuals who have not filed the ITR on time. The filing the ITR on time can save you from the unnecessary penalties. Though the penalty is kept as low as 1000 who has income up to 5 lakh so, as a responsible Indian citizen it is our duty to file the ITR on time.
2. Visa Processing Fast
If you have applied for a Visa, then the foreign countries will check the proof of your income and for that Income Tax Receipts are required. So, it the very big benefit of filing the ITR on time.
3. You can claim for refund
There could be a possibility that the tax can be deducted at the source TDS on some investment made on by taking the name of the individual. If the TDS is cut then you can claim for a refund by filling the ITR.
4. Processing of the loans and credit cards faster
While you apply for the loans or the credit cards then the company will check all the details of the ITR or the taxes that you have paid to date. They check that whether you have a regular income or not. If your ITR is filed from time to time then you can’t think that you will get the credit card or the loans as faster that you can’t imagine.
5. You can carry the losses forward
Income tax rules allow us to carry the losses forward. if you have a loss in the company or any business then you can not pay tax and can say that you don’t have enough income to pay the tax. They will review your request and hopefully, you can also save to pay the tax also up to 8 years. That is a good thing. Isn’t it?
6. Establishing an income proof in repayment cases
Though it is not compulsory to file ITR in case of the motor vehicles when there is accidental death or disability in case of repayment. The idea to establish the income of that person is from the ITR that they have filed to date.
7. Useful in the Address proof
ITR receipt that is sent to the registered address which then serves as your residential proof.
8. Making the life easier of the Freelancers and the independent Professionals
Freelancers and independent professionals do not have the eligibility of Form-16. This is the only document that they have to show that they have filed the ITR. By showing this they can save themselves from the funding issues and the transactional problems.
How do I log into my tax website?
- Go to the official website of the Income Tax Department – https://incometaxindiaefiling.gov.in/home.
- Once you open the page, you will see a box on the right side that has three options – ‘Register yourself’ for new users, ‘Login Here’ for existing users and the third button is for ‘Help’