Benefits of Filing Income Tax Returns
1. Avoid Penalty up to INR 10,000/-
According to the law, if the return is filed after 1st January, the penalty charges can go up to Rs. 10,000. But the government provided ease the small taxpayers by reducing this
penalty to a maximum of Rs. 1000 for taxpayers with a turnover of less than Rs. 5 lakh.
2. Avoid Tax Notice of Income Tax Return
If you fail to properly file your Income Tax Return, you may receive a tax notice from the Income Tax Department that would get you in trouble. Better you timely fulfill the ITR filing process.
3. Refund of TDS
If your client or employer deducts your TDS while making the payment, it might be that you’re eligible for Tax Refund. On filing Income Tax Return you can claim your
TDS credit and get a refund back excess TDS deducted over your net tax liability.
4. Easily get Loan
Income Tax Return is a primary requirement of the bank and financial institution while sanctioning the loan. The receipts giving you financial integrity
are shown in the return of the income tax, allowing you to quickly penalize the loan.
5. Losses carry forward
Timely filing of income tax return makes you eligible to carry forward your business & capital losses, if any, during a financial year which can be
adjusted against income earned in the subsequent years and ultimately save your taxes.