I am a tuition teacher, I don’t need to file income tax. I am just a middle-class woman earning some money from my home kitchen, surely, I don’t need to file income tax. If you can relate to these statements then it’s probably time, we enlighten you on why tax filing is important for everyone, a self-employed person, a freelancer or a white collared employee of an MNC.
To make things easier, we have highlighted 13 reasons why you need to file income tax in India. Read them all here.
- To Help the Government
One good reason to file an income tax is to help the government decide the means and amounts of expenditure of citizens. When the government has realistic data, it helps in creating citizen-friendly policies.
- It’s Mandatory at Times
Filing returns become mandatory for people who earn a specific amount of money in a year. If it is found that you are not filing the income tax when it’s mandatory for you, you can get in trouble with the income tax department.
- Registration of Property Becomes Easier
If you want to register a property in your name, furnishing income tax returns of the past three years might help you to get done with the process easily.
- Getting Loans Becomes Simple Too
People who want to take a home loan should maintain a steady record of all income tax returns as a loan provider would certainly want to see the same to establish your credibility as a loan seeker.
- Getting a Credit Card is Simpler
If you want a new credit card, providing copies of your income tax returns will help the card provider to issue you a card swiftly.
- Claiming Adjustments
Claiming adjustments against past losses is easy when you have filed income tax consistently.
- Revised Returns
In case you want to file a revised return, you must have filed the original return previously.
- Revoking Rejections
When you have filed income tax returns for years, you can show it as a proof of your reliability to a loan company and persuade it to cancel your loan application rejection. It also comes in handy if the loan provider is offering a less amount than the amount of loan you need.
- Visa Processing
If you want to go abroad, you will need to have a visa interview. During the interview, you will be asked to furnish ITR receipts of the last few years or the latest year. It will ensure the country administration of the nation you plan to travel to that you will come back to India and won’t settle there.
- Purchasing High Life Cover
In case you want to get a high valued life cover, the ITR receipts will come in handy. This is especially needed when you want to buy a term policy with a sum insured that is of INR 50 lakhs or more.
- Government Tenders
If you plan to bid for any government tenders, you will need to provide ITR receipts to prove that you are reliable. The number of receipts you need to provide varies from one government department to the other.
- Proof of Income
If you are self-employed or work as a freelancer, an ITR return might work as a substantial proof of income. It comes in handy during job interviews if you plan to join the corporate world again.
- Marriage Prospects
Believe it or not, if you are self-employed and you need to prove your earnings to a prospective bride or groom or their families, ITR receipts will help them trust you better, especially if it’s an arranged marriage.