Benefits of filing Income tax return online
We often hear from the elders in our house to file ITR. But have you ever wondered what is ITR and why is it important to file it and what are its benefits of filing ITR online? If you also want to get answers to similar questions, then this article is only for you. Let us know through this article how can I get benefits of filing ITR online.
ITR i.e. Income Tax Return is a tax return form used by taxpayers to report their income and assets to the Indian Income Tax Department. It contains details related to personal and financial data of taxpaying people. ITR is mostly filed in electronic mode but for senior citizens there is an option to file it manually also.
The taxpayer can be an individual, artificial juridical person, HUF, firm, trust, company or society. A person does not need to attach any documents, while paying income tax or submitting their returns.
Who can file?
According to the Income Tax Law, some categories have been created, under which all taxpayers have to pay tax within a certain time.
Let’s come to know about the person’s who are out of the tax:
- If a person’s age is less than 60 years and his annual income is upto Rs 2.5 lakh, then no liability arise to pay tax. A person exceeding this limit will have to file ITR.
- Even if the age of a person is more than 60 years and less than 80 years and the annual income is upto Rs 3 lakh, that person will still be kept out of the tax.
- Along with this, if a person’s age is more than 80 years and his annual income is upto Rs 5 lakh, then he will also be kept out of the tax.
Let’s come to know about who need to file ITR
These people will have to fill ITR
- If the income of a person is under the prescribed limit but deposits more than Rs 1 crore or the total amount in one or more current accounts, then he will be kept under the purview of ITR.
- Every company and firm, whether in loss or profit, has to file ITR.
- If a person spends more than Rs 2 lakh on traveling abroad, then it will also be kept under the purview of ITR.
- If a person’s expenditure on electricity consumption is more than Rs 1 lakh, then it is necessary for him to file ITR.
- If an Individual having Income is more than taxable limit (i.e. Rs. 2,50,000) then need to file ITR on or before due date.
Lets come to know about the benefits of filing ITR online
There is some benefits of filing Income tax return online:
- If you apply for a job outside the country and you are filing your ITR online then it is necessary for you to have ITR for the last 3 years. For getting the job outside India.
- You can get the benefits of VISA “Applications for visas” are accepted only once file ITR. Therefore, if you also have such planning then it is very important for you to fill ITR.
- Tax filing as a good citizen also makes it easier for banks to assess the source of income, while applying for loans like auto loan, home loan, business loans etc.
- ITR acknowledgement mentioned your registered address, which can serve as address proof.
- Online ITR filing is helpful to get credit card easily. It is helpful for getting your card application approval fast. If you never file your ITR, Banks may reject your credit card application. Therefore income tax return should be file. You must require 3 years ITR for this.
- If you fall in the tax bracket and do not file ITR on time, you may have to pay a penalty upto Rs 10,000. Which will not be good for the coming year.
- If you want to start your own business then filing ITR is very important. Apart from this, if you want to take contract of any department then you will have to show ITR. Even to get a contract from a Government department, ITR of last 5 years will require.
- If you do any transaction involving a large amount then ITR proves helpful for you. By filing online ITR on time, you do not face the risk of getting a notice from the Income Tax Department on buying or selling property, depositing large amounts in banks or making large investments in mutual funds etc.
- You can get an insurance cover If you want to take an insurance cover (term plan) of Rs 1 crore, then insurance companies may ask for ITR from you. Actually, they rely on ITR to know the source of your income and to check its regularity.
So, you can easily get these benefits, while filing the ITR online on or before the due date.
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