How I Benefited By filing Income Tax Returns
I will tell you how I was benefited in 7 ways by filing the Income Tax Returns early and the 5th one is my favorite.
Most of the salaried employees think that if their salaries fall below the taxable bracket then there is no need for them to do income tax return filing but this is not true.
Every salaried employee needs to do income tax return filing once they start the job and start earning.
Many Financial experts say that apart from being a good corporate citizen, an ITR also serves as a proof of income earned by an individual and the overall tax paid.
So I too advise you to do income tax return filing even if your salary falls below the basic exemption threshold.
Here are the 7 Benefits of Filing Income Tax Returns Early
Income Tax Returns filing Benefit #1: Easy to get the Loan
I was in need to loan when I wanted to build my first dream house and when I approached the bank on this matter the bank people wanted to check my creditworthiness.
I got the loan approved easily and faster as the banks found out my creditworthiness and my current income from the ITR I filed every year.
Minimum of 2 to 3 years of ITR is required for the bank to process your loan application even if the ITR is giving NIL returns.
The loans can be any type such as Auto Loan, Home Loan, etc.. The Banks can provide you the loan of about 10 or 15 times of your annual Income.
For example, if your annual income is 2 lakhs then the loan amount that can be approved is 20 Lakhs which in turn depends on the bank norms.
All I want to say here is if you require a loan in future you must file your ITR for a min period of 3 years.
Income Tax Returns filing Benefit #2: Getting Visa
I’m a person who loves to travel and explore new different places which I haven’t seen.
Finally, the time came when I had to apply for a VISA to travel to different countries and one of the important document that was required to get my VISA was the copies of my past tax.
The authorities check whether a person is filing ITR or not even if his/her returns are NIL.
And here once again, it was very easy for me to get the VISA as I had the min of 3 years of ITR filed on time.
If you are also planning for a foreign tour please keep your ITR filed ready for Min of 3 years.
Income Tax Returns filing Benefit #3: Credit Card
The third benefit which I got by filing ITR is that I was able to get the credit card application approved fast as the ITR details my income proof to the banks
If you have do not have the ITR then it becomes very difficult for a bank to approve your credit card application.
Income Tax Returns filing Benefit #4: Carryforward Losses
I was able to compensate the losses of my previous financial year by carrying forward the losses to the current. If tax returns are not filed on time, unadjusted losses cannot be carried forward to future years.
Income Tax Returns filing Benefit #5: Tax Refund
I had a Fixed Deposit in a bank which was earning the interest of more Rs. 10000 and the bank deducted the TDS as I did not fil the NO DEDUCTION certificate
With the help of ITR filed on time, I could get back the deducted amount back hence the third benefit which I got is Tax Refund.
Note: Similarly if you WIN any lottery the TDS will be deducted and the refund can be obtained with the help of ITR receipt
Income Tax Returns filing Benefit #6: Higher Insurance Cover
I was able to buy an insurance policy with higher cover as the insurance company was able to believe that I’m a responsible taxpayer as I filed the tax returns on a regular basis.
Income Tax Returns filing Benefit #7: Address Proof
ITR receipt is sent to the registered address, which I can serve as a residential proof wherever required.
So, friends, these are the main 7 benefits of filing Income Tax Returns Early and regularly.
If you also want to get these benefits then please do follow these 7 ways and also don’t forget to share this with your friends and family.