Income tax makes an essential part of the financial fund that goes into developing the infrastructure facilities in the country, which includes running various government programs and maintaining central institutions etc. This makes it a genuine responsibility for every citizen to file their income tax return on time. However, apart from contributing to the growth and development of our country, filing income tax returns gives other personal benefits to the citizen. It establishes your credibility with financial institutions, gives you the access to a range of credit and investment products etc.
Let us understand some primary benefits you can get by filing the income tax return:
- Simple loan approval: Most banks are likely to ask your income tax return as a part of your loan application process to verify your income and its source. Filing your income return on regular basis puts you in the positive position with the potential lenders. So, whenever you apply for a loan this makes you a creditworthy person.
- Visa processing benefits: While processing your visa application, it is likely that you will be asked to provide your income tax returns by the respective embassy / consulate. Usually it is expected that you will be asked to provide past 3 years tax filing papers.
- Claim your tax refund:One of the most significant advantage of filing the income tax return is that, if you’re eligible to receive tax refunds, this is the only way to know it right. In cases such as regular TDS (tax deducted at source) deductions or advance tax payment, you might just find yourself eligible for a tax refund from the government depending upon your tax eligibility.
Suggested read - How to Check and Claim for Income Tax Refund
- Carry losses forward:Within a financial year, you may have suffered damages such as speculation loss, capital loss or business loss. Your income tax returns are the only way for you to carry them forward to subsequent years and thereby balance them against your future income.
- Proof of address and income: Lastly, apart from all these benefits, the receipt of your income tax returns is a comprehensive document that serves the purpose of providing legitimate address and income proof.