Benefits of Filing ITR: People frequently hold the misconception that only individuals who fall inside the tax bracket should file an income tax return. You are thinking incorrectly if you concur. You must file an ITR whether you fall under the tax bracket or not, according to financial guru Shikha Chaturvedi. When the income tax return is submitted, a certificate is issued. This is formal documentation that demonstrates your civic responsibility. You can gain numerous significant advantages in the future thanks to this credential.
You tell the Income Tax Office of your total income and any tax-related information by filing an ITR. When the income tax return is submitted, a certificate is obtained. This is formal documentation that demonstrates your civic responsibility. You can gain numerous significant advantages in the future thanks to this credential. Discover the advantages of filing an ITR here.
ITR is necessary for a visa
When issuing visas, the United States and certain other developed western countries want a copy of the applicant’s income tax return. ITR is used to determine a person’s financial situation before they are allowed to enter a country. In other words, you must also file an ITR for a visa. A copy of the ITR of one’s parents or legal guardian may be provided for those who do not earn income on their own.
Can get a contract from a government agency.
A lot of people conduct business by accepting contracts from governmental agencies. You must file ITR if you wish to accept a contract from any department. The latest five years’ ITR must be provided to obtain a contract with any government agency.
For a substantial amount of insurance
When purchasing any insurance coverage costing Rs. 50 lakh, Rs. 1 crore, or more, you must present the ITR receipt. You will be requested for ITR paperwork when purchasing a term policy with LIC, especially if the policy is 50 lakhs or more. This determines whether you qualify for such a large quantity of insurance or not.
Helpful in providing compensation for accidental death
In the case of third-party insurance, the amount of insurance to support the decedent’s family in the event of his death in an accident is decided following his income. The insurance company requests documentation of the deceased’s income from the family throughout the court procedures. A copy of the ITR is useful in this circumstance. The family of the dead receives the insurance claim simply as a result.
Read More: Belated ITR Filing: File Your Income Tax Return By December 31, 2022
