Income Tax Return Filing is an annual occurrence and everybody should file it within the given period of time. There variety of advantages in filing for both income tax Return and GST Return. Aside from that, if you file as early as possible, it’ll be a faster response from the CPC.
We live in a country of 1.3 billion people where only alittle fraction pays their taxes. It’s basically an ethical obligation to pay your taxes and file for Income Tax Returns to get your refund if you’ve got any claims for a tax deduction.
Although a number of individuals comprise the exempted tax category i.e. with annual income less than 2.5 Lacs, it’s always beneficial to file for ITR as there are a number of added benefits.
1. You’ll Get Easy Loan Approval
In the event that you intend to apply for a home or car loan in the future, it is a smart thought to keep up a consistent record of documenting returns as the Loan Companies will in all probability demand it. Truth be told, you may even consider documenting your partner’s returns (for married couples) in the event that you need to apply for a loan as a co-borrower.
Financial Organizations may demand to see your returns in the course of recent years before making the final decision on your loan. Actually, as per the government’s new policies, it is compulsory for them to do so.
2. Easier To Get A Credit Card
Same as applying for a loan, when you apply for a credit card, your recent year’s returns and credit score plays a crucial part. If you’re up so far with all of your recent years filing then it’ll reflect on your Credit Score and hence, your chances of getting credit card request approved increases.
3. Quick Visa Processing & Approval
It is now a norm for most of the embassies & consulates to ask for furnish copies of your tax returns for the recent few years at the time of Visa application. And if you have a well maintained recorded and have filed for ITR in recent years then your request will be processed much faster.
4. Income Tax Return Filing Can Also be used as an Income and Address proof In The time of need.
5. Carry Forward Of Losses
If you file for Income Tax Return then it allows you to carry-forward losses to set them against capital gain for that assessment year. If you don’t file ITR then the losses you incurred during the year can’t be recorded within the income tax return and then can’t be shown for exemption in a subsequent year for the purpose of tax calculation.
6. To Claim Refunds
A very simple and obvious reason to file for Income Returns is to claim refunds on the investments that you made for tax saving purposes. If you carefully put together all the documentation of investments made in the financial year in question then you’ll be eligible for refunds considering you file early and correctly.
7. Avoid Penalty
If you’re in an income range that requires you to file for ITR and you don’t then you will have to face a penalty up to Rs. 5,000.
What Is GST Return And Why File It?
Anyone who applies for GST Registration is obligated to file for GST Return also . It’s a compulsory procedure as per the Tax Authority and needed to be be done.
There are differing types of GST Returns that require to filled by companies and dealers as per their nature of business. In any case, they need required a GST Return for every 2 months along with an annual GST Return.
Under GST, a registered dealer has got to file GST returns that include:
• Output GST (On sales)
• Input tax credit (GST paid on purchases)
So, the main reason you would like to file GST Return in time is that you simply will be charged a penalty of Rs. 100 per day starting from the deadline day to the day you finally file for GST Return.