Benefits Of ITR Filing On Time
Taxes / Aug 31, 2020
If you have started earning, you should file ITR or Income Tax Returns. Receipts of your income tax returns are essential documents that can help you while making several investments. Given below are a few benefits of filing ITR before the deadline is over.
- Tax refunds can be claimed easily
Often, the Income Tax Department owes refunds to people. If you have such a refund due, then you will only be able to claim it if you file an income tax return on time.
- Credit cards are issued without any problems
Banks will not issue credit cards if you are unable to submit a copy of your recent ITR. If you have filed your income tax return before the due date, then you will be able to have the receipts ready, and the bank will approve your request for a credit card.
- All losses are carried forward
If you carry forward your losses of one year to the following years, you can then set them off against your income of those years. However, that can only be done if you have filed ITR well before the deadline.
- Loans are approved without any hassle
Major banks ask for income tax returns before approving any loan, especially home loans or loans for vehicles. If you have the income tax return filed on time, then you will be able to submit copies of the receipts, whenever required. This will get loans approved quickly.
- Ready proof of address and income
Income tax return receipts can be used as proof of address or even your income, especially if you are self-employed or a freelancer. If you have filed ITR without any delay, then you will be able to use the copy as proof if necessary.
- Insurance with high cover can be bought
Many insurance companies ask for ITR receipts. This is to make sure that you are not evading your taxes. If you have ITR filed on time and if you can submit copies, then you can avail of better insurance policies.
- Penalties can be avoided
Tax officers can penalize you for not filing ITR on time. In many situations, you will be required to file an income tax return before the due date, and if you do not adhere to those rules, you might have to pay a hefty fine.
- Easy processing of Visa
When you are applying for a Visa, most embassies or consulates will ask to see your income tax returns of at least the past two years. If you file them on time, then you will not have any problems in providing the copies, and your Visa will be processed quickly.
Additional interest can be avoided: If you do not file ITR on time, interest will be added to the tax amount. It makes no sense to pay extra and so you should always pay before the due date is crossed.
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