If your Income doesn't exceed Rs 2,50,000 during the year, then you're not legally bound to file your return. But it's still recommended that you file your return because of the benefits that come with filing income tax return :
Accidental Claims :This is one of the benefits that comes to picture when you meet with an accident and want accidental claim from the insurance companies.If you have your income tax returns with you then court applies simple formula to arrive at the claim amount. The formula for claim is by multiplying the yearly income in ITR with years of expected life of deceased.
Proof of Income:/Proof of Net worth :What's the best document for your Income Proof? No brownies for guessing this one. Yes, we all know it's your income tax return.
Refund:You can claim refund, of the amount that you paid excessively to the department. There is no bigger joy than getting back your money from the Income Tax Department.
Eligibility in Loan Application:Income Tax Returns of last three years is one of the basic documents required for loans. This helps banks in judging your pay back capacity.
Obtaining Visa:For traveling abroad, foreign consulates of many countries ask you to furnish last 3 years' income tax returns or current year's income tax return. Absence of any return can reduce the chances of you getting visa specially under the visitor, investor and work permit category.
Carry forward of losses:Want to claim last year's business loss? File your income tax return and you're all set for it.
For Startup Funding:Looking to raise funds from VC's, angel? You need to have income tax returns filed till date ready. Many investors study your business scalability, profitability and other cost parameters from your business income tax return.
Protection against Black Money:If you diligently file your income tax return every year, then your savings will never be at risk of being termed as black money by the Income Tax officials as any income not reported to Income Tax Department comes under the radar of black money.
Buying insurance Policy with high life cover:Some insurance companies are adamant for income tax return while providing high life cover to verify your annual income.
Obtaining Government Tender:Sometimes, furnishing your income tax return is a must to apply for government tenders specially when tender of high value are being awarded.
Avoid penalty:Non-filing of income tax return can lead you in trouble with the income tax department. You carry the risk of not only paying penalty but interest on it as well.
Credit Card Application:Want to flaunt a high limit Credit Card? Well, you better have your income tax return with you to get the hang of it.
Growth of the nation:Be a part of the nation building process by filing income tax return.Credit-tax2win.in
It is a good practice to file income tax return, even if you are not liable to pay tax.
In many cases even banks ask for ITR, whenever you go for a loan facility.
The standard norm is to have ITR copies of 3 years, filing return even if there is not liability to file will help you in documentation.
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