Top 6 benefits of filing Income Tax Returns

Are you consistently paying taxes but overlooking the benefits you could be receiving?

Paying taxes is our civic duty, helping to stabilize the government, strengthen the economy, and support societal welfare through government services.

But what if your tax deductions exceed what you actually owe? What if you are not liable to pay tax for a particular year yet still see deductions on your income?

That’s where the Income Tax Return proves to be a lifesaver.

Income Tax Return is a document that is used to declare the information on your income, the tax due on that income, deductions, and exemptions for a particular financial year.?

Here are the top 6 benefits that you can get by filing an ITR:

1. You can claim excess TDS.

For example, if your employer deducts 1 lakh in TDS assuming that you need to pay only 80,000 as tax, the extra 20,000 will be the TDS which you can claim by filing an ITR.

2. You can get your loan approved easily.

When you apply for a loan from any bank or private financer, they will verify your financial profile to determine your ability to repay.

They will review your income, Income tax returns, and the accuracy of the financial information you provide. Your ITR helps them to determine whether you will be able to repay your loan.

3. Carry forward your losses

If you’ve incurred losses from investments, trading, rental income, or other transactions, you can carry them forward by filing an ITR, reducing your tax liability in the following year.

However, under the new tax regime (ITR-4), this is not possible. To carry forward losses, you must file under the old regime (ITR-2).

4. Use ITR documents as authoritative proof of address.

If you need to provide address proof for obtaining a document or approval but lack a suitable legal document, your ITR can serve as valid proof.

It can also be used to obtain government-issued IDs like Aadhaar, passports, and other essential documents.

5. Simplify VISA Processing

Many embassies and consultants require income tax returns from previous years to verify that you comply with tax regulations and fulfill your civic duties.

Ensure you regularly file your ITR to facilitate VISA approval.

6. Facilitate fundraising for your new business

If you're seeking investment for your business, potential investors will want assurance about its stability, sustainability, and profitability. Your ITR can provide the credibility they need.

If you’re a business owner or entrepreneur looking to manage costs, mitigate risks, and create a strategic financial plan for long-term success, reach out to SBS Global to discover how we can help you achieve a stronger financial future and thrive in a changing market.

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