Filing an income tax return in India is necessary for every resident individual to follow. One must disclose his source of income and pay the necessary amount of tax as a part of the income tax obligation of the government. The source of earning an income in a financial year and the total amount of earnings must be disclosed in an income tax return.
Residents and non-resident individuals with income in India are required to file an income tax return. A professional chartered accountancy firm and NRI tax advisor services become necessary in such cases. There are also various benefits that resident and non-resident individuals in India receive upon filing an income tax return in India. These are as follows:
Social obligation to the country:
Filing an income tax return and disclosing the source of income in an ITR helps fulfil the social obligations of an individual towards one’s country. The tax from the citizens of India is used for the betterment of the country. Therefore, filing returns can help individuals contribute to society.
For obtaining a loan or credit:
Income tax returns enable individuals to obtain loans from banks and credit cards. Moreover, timely filing of an income tax return can allow individuals to get loans at low-interest rates.
Settlement of past year losses:
Filing income tax returns annually enables individuals to adjust their losses from the past year. This helps reduce their overall application of paying income taxes to the government in the subsequent years.
Processing and obtaining TDS refunds:
Individuals who are employed and pay TDS every year can easily claim a tedious refund if they file an income tax return in India correctly. This helps in saving the hard-earned money that an individual earns through employment.
Assistance in Visa application:
Filling income tax returns on time every year can enable prompt acceptance and approval of visa applications.
Serves as a reliable address and identity proof:
Income Tax returns even serve as dedicated address and identity proofs that one can use for various services like purchasing a house, securing water and electricity connections, etc.
Serve as a substantial income proof:
Income Tax Refund filed annually serves as the best income proof for individuals, which they can use for various purposes and obtaining different services from the government.
Saving oneself from any penalties:
One can easily save themselves from any government penalties if one fails to file an income tax return.
Protecting income earned from various sources:
Income Tax Refund filing can enable individuals to save the tax paid every financial year. Deductions and losses can help in reducing the overall tax obligations.
Protection from legal action:
Non-filing income tax returns and taxi vision can lead to legal action by the government. Filing the same on time can help improve the overall credit score of individuals and protect them from legal action.
A professional chartered accountancy firm and NRI investment consultant can help residents and NRIs in India file income tax returns efficiently.