There are many benefit of filing ITR. Some of this Mentioned below.
Filing the ITR will help Individuals, When they have to apply for any loan like Car loan, Bike Loan, Bus Loan, Taxi Loan, House Loan, Business Loan, OD Limit, Personal Loan, Children's Education Loan, Higher Education Loan, Margie Loan etc. All major banks can ask for a copy of tax returns.
2. Claim Tax Refund of TDS / TCS Deducted
If any person / Company / Bank deducted TDS or Collected TCS due to applicability of TDS provision but your total income is not subject to tax, Then you can claim the income tax refund due from the Income tax department by filling an Income tax Return on time.
3. Helps in buying Insurance (Life Insurance, Medical etc.)
For gating higher amount of Sum Assured in Life insurance you have to proof that how much currently you are earning by providing ITR of Last 3 Year, so that insurance agent can provide you the Higher sum assurance plan.
4. Proof of Income
By filing income tax return, you are able to furnish that you have this much amount of income on yearly basis.
ITR is the only document of Income proof.
ITR is the Most important document for your income proof.
5. Document for Visa Processing.
ITR is an one of the most important document required for applying visa. Visa authority normally asked past couple of years Income tax Return (ITR) at the time of VISA Application.
6. Easy Processing of Credit Card Application
While applying for credit card many banks asked for last year ITR, so that they can provide you suitable limit.
7. Government Tenders
While applying for any Government tenders some basic documents required and ITR is one of them.
8. Carry forward of Losses
If you filed your ITR on time, then you can carry forward your loss in the next financial year & compensate the loss with your future income. with this you can reduce your further tax liability.
9. Avoid Penalty or Notices
If you are required to file your Income tax Return (ITR) but didn't, then the tax assessing officer have the right to impose a penalty of an amount up-to Rs.5000.00 (Five Thousand).
10. Tax Benefit
There are many tax benefit available in income tax clauses that you can avail only by filing Income tax Return on time.