Benefits of Filing Income Tax Return on time

The following situations necessitate the filing of an income tax return:

• The exemption level for a regular taxpayer is 2.5 lakhs, for senior people it is 3 lakhs, and for super senior     citizens it is 5 lakhs. If your taxable income exceeds the exemption level, you must file an ITR.

• Individuals who possess assets outside of India and earn income from them are required to file an ITR.

• An individual who spends more than Rs. 1 lakh on energy in a fiscal year is required to file IT filings.

• Assesses who deposit more than 1 crore in one or more bank accounts in a fiscal year are required to file an   ITR.

• If you spend more than 2 lakhs on international trip during the financial year, you should file income tax          returns.

Even if you don't come under any necessary provisions, there are numerous advantages to completing a tax return.

1. Simple loan processing: When a bank processes a loan for a customer, it requires a three-year ITR. If you are intending to buy a car or a house, or if you need a personal loan, an ITR will be very useful. Aside from receiving a loan, the income tax return aids in the processing of credit cards, insurance policies, and other financial transactions.

2. VISA Application: When people want to work or travel outside of India, the immigration officials ask for copies of previous tax returns. The filing of tax returns helps that VISA applications are processed quickly because immigration officials consider the individual to be tax-compliant. Certain embassies, such as those of the United States, Canada, and the United Kingdom, are known to be fussy about an individual's tax return records.

3. Serves as Proof of Income: Unlike salaried taxpayers who receive a salary certificate in Form 16, self-employed taxpayers have no proof of income. As a result, the income tax return acts as proof of income for these self-employed taxpayers, providing a full breakdown of their earnings and spending for any given fiscal year.

4. Earn a tax refund: One of the major advantages of filing an ITR is that you can get a tax refund. You may be eligible for a tax refund if you invested in tax-saving instruments and paid more income tax.

5. Losses carried forward: To claim specified losses for an individual taxpayer, such as losses from capital gains, business, or profession, etc., a tax return must be filed on the due date.
Filing tax returns benefits the individual not only in terms of claiming losses carried over in future years, but it also serves as a record of losses that can be claimed in the future.

6. Avoid Penalty: If you were obligated to file returns but failed to do so, the tax officer has the authority to levy a penalty of up to Rs. 5,000.