An Exclusive Guide to find the Surprising benefits of filing regular income tax returns is detailed below for reference.
Income tax (IT) Return:
An income tax return is a medium between Government and the public to submit their income and tax details. Citizens are required to file IT returns on meeting specific requirements such as if total income exceeds the basic exemption limit (2,50,000) or if it is a company or a firm irrespective of their income etc.
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Here Total Income means Gross Total Income (GTI) before Chapter VI A Deductions .For example, if the Gross total income (GTI) is 3.5 lakhs, Chapter VIA deductions is 1.5 lakhs and Net taxable income(NTI) is 2 Lakhs\
Even the net taxable income is less than the basic exemption limit, the individual is required to file an IT return because GTI is the income to be considered instead of the NTI. So, Income before considering the Chapter VIA Deductions should be lower than 2.5L.
Surprising benefits of filing regular income tax returns:
Regular filing of Income tax returns will yield the following incentives:
1. VISA Processing
Visa Authorities may insist on the IT returns. This is to understand the financial net-worth of the person. It also sufficiently adds to the belief that the person will return to India.
The foremost criteria for granting Loans is to understand the repayable capacity and net worth of the individual. Income tax returns will show up the complete Stats of the person.
Income Tax has initiated the concept of TDS to deduct the tax at Source itself. Accordingly, the Payer deducts tax at the time of payment to the payee.
For example, the Banker deducts TDS on Fixed deposit interest if it exceeds Rs.10,000 in the same year. Here, Banker does not consider whether the payee’s ( Customer) income is more than that of the basic exemption limit.
In case of such TDS Instances, the only way a payee can claim the tax amount as the refund is by the filing of income tax ( Note: Here it is assumed that the payee’s income is less than the basic exemption limit)
4. Accidental Claim in Third party Insurance Claim
Have you heard of the Saying “Doing something is always better than Nothing”?
I think probably, “Yes”, isn’t it?
Courts do insist on Income proof for deciding the Accidental Claim compensation. So, it is always advisable to file ITR.
5. Carry Forward of Losses
Carry Forward of Losses for next years is entertained only if Income tax returns are filed
What does Carry Forward of Losses Means?
- Income tax Rules allows to set off the losses against incomes from the same year
- What if there are still unabsorbed losses remain after set off? —>Then, those will be allowed for Carrying forward to the next year for set off against the incomes of subsequent years.
Besides being Adhering to Law and indirectly support the Nation, these are benefits of filing ITR. Take a Call now itself here!
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