As explained in the first part of the article, filing of Income Tax return will provide great amount of benefits and peace of mind. In this article, I will explore few more benefits of filing Income tax returns.
If you properly file your Income Tax returns, you will be able to obtain visa from consulates of respective country very easily for the purpose of foreign travel. You should provide before the authorities that you are financially sound by providing them your Income Tax return statement.
Quick property registration
If you had purchased any house or land and would like to register with the appropriate authority, you will be able to register the deal easily if you had filed your Income Tax returns. After online verifications, the registrar will quickly provide you with the documents you require. This process will be delayed if you failed to disclose your income.
Reduces Tax Liability
If you had paid premium to LIC insurance policy, you will be able to show the policy amount while filing your Income Tax return and get instant deduction from the total tax amount. This will reduce your tax burden to a large extent. In this case, you can more or less getting refund of policy amount via tax deduction.
Save Tuition Fees
If you have two children and are paying tuition fees for them, then the amount is eligible for deduction under section 80C of the Income Tax Act 1961. Hence, if you file IT returns, you can claim the fees back as deduction from your overall tax amount.
If your employer or bank had deducted tax for salary or deposits in excess of the actual amount, you can claim refund back from the department by filing the tax. Otherwise, you will be paying taxes which are not required. Hence, before filing IT returns make sure to verify all documents so that you claim refunds.
Carry forward losses
If your business is under loss, then your taxable income will be reduced if you opt to carry forward losses on various heads of income. You have to prove that your concern is under loss and you will be able to pay reduced taxes.
If you properly and timely file income tax returns, you will be eligible for appointment in Judicial and jobs which are financial in nature. In India, the returns of the past seven years are verified before doing an interview. Hence, if you are qualified and expect judicial jobs, you should file returns, which will benefit one day.
If you are properly filing Income Tax returns, your dependents will be able to quickly avail claims if you met with any accidents. The authorities will multiply the yearly income in the returns with years of expected life of the deceased person. You should file returns if you care about your family and kids.
If you are earning yearly income in excess of the maximum tax free limit, you should approach a reputed financial consultant or Chartered accounts to file your Income Tax returns online. You will be provided with an acknowledgement slip, which you can make use of show that you have filed taxes. You can also file taxes from your own home if you are aware of the whole process. It’s simple. Try today.