Advantages of Income TAX Filing
There are many advantages of Filing the tax. Some of them are listed below:
- Get your VISA stamped: If you are traveling overseas, foreign consulates ask you to furnish ITR receipt of the last couple of years at the time of the visa interview. Some embassies may ask for ITR receipts of previous three years, while some others may ask for the most recent certificate. This is especially true if you plan to travel to the US, UK, Canada or Europe, not so stringent for South East Asia or Middle East. ” Producing ITR receipts show that one has some source of income in India thus, strengthening your case as someone who will not leave the country for good but will return,”.
When traveling to foreign countries, whether on a business or leisure trip, experts suggest you always carry income-related proofs along — salary slip, Form 16 and ITR receipts. Consulates specify these requirements in most cases.
- Self-employed: Businessmen, consultants and partners of firms do not get Form 16. Hence, ITR receipts become an even more important document for them, provided their annual income exceeds the basic exemption limit of Rs 2.50 lakhs.
For all sorts of financial transactions, ITR receipts will be the only proof of income and tax payment for the self-employed.
- Government tenders: Experts say that if one plans to start their business and need to fill a government tender or two for the same, they will need to show their tax return receipts of the previous five years. This again, is to show your financial status and whether you can support the payment obligation or not.
However, this is no strict rule. It may vary depending on the internal rules of the government department. Even the number of ITRs required can vary.
- Get your Money Back:If you have paid the more than what you have to then you will get the refund after filing the tax
- Loans from banks:Buying life cover of Rs 50 lakh or Rs 1 crore has become commonplace. However, these covers are available against your ITR documents to verify annual income. “Life insurance companies, especially LIC, ask for ITR receipts these days if you opt to buy a term policy with sum insured of Rs 50 lakh or more,”.
The sum insured one can get with a term cover depends on many factors one of which is the income of the insured. If an insured does not have a very high salary, he doesn’t need a higher insurance cover.
- Proud Indian Citizen:By paying tax one can feel proud as they are contributing towards India’s growth.
- Avoiding Penalties: One can avoid paying penalties if they have paid it on time.
Now let’s discuss e-Filing benefits over other types of filing.
- No Time or Place Constraint
- Improved Customer Service
- Faster Processing of Acknowledgement and Refunds
- Go Green
- Reduced Processing Costs
- More Secure than Paper Based Returns.
To know how to file your tax online then go through my post How to File TAX online.