BENEFITS OF FILING ITR EVEN WHEN INCOME IS BELOW EXEMPTION LIMIT

WHY EVERYONE NEED TO FILE ITR WHETHER SERVICE CLASS OR BUSINESS CLASS

As per Income Tax Act, 1961, every person need to file ITR who have Gross Total Income exceeding 2, 50,000 in a Financial Year. So, we hereby discuss some issue why people not file their income tax return:

Above we discussed why some people not filing their income tax return. Now we discuss, benefits of filing Income Tax return:

1. CLAIMING TDS REFUND:

Some specified transaction are falling under the categories where need to Deduct TDS. To claim TDS individual need to file Income Tax Return (ITR) of Relevant Assessment Year.

2. TO AVAIL LOAN FACILITY FROM FINANCIAL INSTITUTIONS:

While any person applying for loan, the ,eligibility and the quantum of loan dependent on their earning capacity which can be prove through ITRs filed by the individual.  ITR gives a fair picture of income earned during the year.

3. CARRY FORWARD OF LOSSESS

If you do not file Income Tax Return (ITR) within due date of filing, you will unable to carry forward losses during subsequent assessment year. To carry forward losses such as House Property Loss, Business Loss etc you have to file your Income Tax Return (ITR) within the specified period.

4. VISA APPROVAL

If you are planning on traveling abroad in future, Then visa processing requires to submit your proof of income for the past few years, to the relevant country’s embassy/consulate. So, Filing of ITR is a compulsory requirement for the processing of visa.

5. CLAIM OF ADDITIONAL DEDUCTION

If Salaried person filed ITR, then he can avail additional deduction which are not considered by the employer at the time of TDS deduction from the salary.

6. FAMILY PROTECTION PLAN (TERM PLAN)

Think to buy higher life insurance cover (e.g. Term Plan) the Life Insurance company asks for proof of income to assess the proper cover amount to be provided to you. For this purpose salary slip, bank statements or ITR of last 3 assessment years are required. The Life Cover one can get with a term cover depends on many factors one of them is the income of the life insured. If an insured does not have a very high income salary, company suppose that he doesn’t need a higher insurance cover.

7. AVOID INTEREST AND PENALTY

If anyone required to file Income Tax Return (ITR) in some specified cases but fails to file ITR then the department have right to impose penalty or interest in that case.

8. CREDIT CARD PROCESSING

Nowadays Credit Card concept create a buzz in everyone’s mind. So if you think to apply credit card they you need to submit ITR.

9. MAKE YOUR LIFE EASIER

Legal compliance have not excuse to skip. So, people who Filed their ITR  may make their life easier because their income and specific transactions are documented and if department ask him for any justification about their transaction they can easily comply.

Freelancer and Independent professional have not form 16 and other any supporting document of employment. So, they can easily documented their income by filing ITR even their income below exemption limit or not.

10. REFER AND GET FREE ITR

Refer your atleast 5  friends or relative to file their ITR with www.TradMate.com and got your free ITR filing with us every time.

So, according to above discussion we can say that every person have to file their Income Tax Return even their income below the exemption limit or higher. This can be very useful for the person in their future needs.