ITR filing Benefits for Non Taxpayers: People who do not fall in the income tax slab are not liable for tax. In such a situation, it is not necessary for them to file ITR. But filing Income Tax Return has many benefits in the future.
This is the reason why financial advisors say that people who are outside the scope of tax should also file ITR. Know here 10 big benefits of filing ITR.
ITR is income proof
Income Tax Return (ITR) is a solid proof of any person’s income. If you are earning from a job, business, or any other source, then filing ITR prepares the correct documentation of your income. This proof is useful in many places.
Prepare financial records for the future
ITR filing creates a strong financial record of yours. If in the future you want to invest in a big property or want to be involved in any big transaction, then the record of ITR will prove to be helpful for you.
Loan approval becomes easier
If you want to take a home loan, personal loan, or car loan, banks consider ITR as a reliable proof of your income. Even if you do not fall in the tax slab, filing ITR makes loan approval easier.
Claiming tax refund
If tax has already been deducted on your income and you do not fall in the tax slab, then by filing ITR you can claim refund of that extra tax. This is possible only by filing ITR.
ITR is necessary for visa
If you are applying for a visa to travel abroad, then ITR filing is an important document. It shows what your financial status is. For those who do not earn themselves, a copy of the ITR of their parents or guardian can be given. This helps you in visa approval.
Legal protection
By filing ITR, the record of your income remains safe with the tax department. This can help you avoid any kind of legal dispute or investigation in the future.
Useful for income validation
If you do freelance work, run a small business, or earn money from irregular income sources, ITR filing validates your income. ITR is useful for renting a house, making investments, and other financial activities.
Helpful in starting a business
If you are starting a business in which you want to get a contract from a government department, then it is very important for you to file ITR. ITR of the last 5 years is also necessary to get a contract from a government department.
Benefit of government schemes
Proof of income is sought at the time of application in many government schemes. Filing ITR makes it easier for you to avail the benefits of these schemes.
For a large sum insurance policy
When you buy any insurance policy of Rs 50 lakh or Rs 1 crore or more, you need to show the ITR receipt for it. In LIC, especially if you buy a term policy of Rs 50 lakh or more, you will be asked for ITR documents. This decides whether you are eligible to get insurance of such a large amount or not.
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