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Filing ITR: Do you know that filing Income Tax Return (ITR) is as important as it is beneficial. Often, people who take loans suddenly or for the first time may face problems if they do not file ITR. Even if your income is less than the income tax return limit, you can get many benefits by filing NIL i.e. zero return. You can easily take a loan. If you want to go abroad, you can speed up the visa process.
Benefits of filing ITR
1. Ease of getting a loan
ITR is your income proof. Which is acceptable as proof of income in all banks and financial institutions. If you want to take a loan from the bank, then you have to submit ITR to the bank as proof of income. So if you are filing ITR regularly then the bank gives you loan easily. Other services can also be availed.
2. Visa Required
If you are planning to go abroad then you have to file ITR while applying for visa. Which is inevitable. Visa officers of many countries require 3 to 5 years of ITR for visa. They check our financial status through ITR.
3. Tax refund can be claimed
If direct tax is deducted on your income then you have to file ITR for refund. Even if the income is not under the income tax limit, refund including TDS cannot be availed without filing ITR refund.
Later the Income Tax prepares its assessment by filing ITR to claim tax refund. If you get a refund, the refund amount will be deposited in your bank account.
4. Also useful as address proof
Apart from presenting ITR as proof of your income, you can also present it as address proof.
5. Easy to carry forward losses
If you are investing in shares and mutual funds and you have incurred a loss, you can carry forward that loss to the next year through ITR. If there is any capital gain in the next year, the loss carried forward will be set off against it. Then you will get a rebate on the tax paid on capital gains.
