HomeArticlesOthersWhat is income tax Return and What are the benefits of ITR for individual ?

What is income tax Return and What are the benefits of ITR for individual ?

What is Income Tax Return?

ITR or Income Tax Return is the form that a person submits to the Income-tax department of India to file information about his or her income and the amount of taxes payable in that particular year. The filed information must apply for a specific financial year between 1st April to 31st March of the following year.\

Income ?

Your income can be of many sources, for example, salary, sale of house or property, dividend or capital gains, profit in business, and the interest received from saving banks, Interest received on Fixed Deposits, Sale of Shares, Sale of Mutual Funds and many more

What are the benefits of filing Income Tax Return for an Individual ?

1. Document for loans

If you wish to avail a loan for buying something the banks may ask you to submit ITR along with other documents, hence ITR will be crucial for getting loans from banks.

2. Deductions

Government sometimes allows certain deductions in order to reduce the burden on the taxpayers and thus encourage more people to pay their taxes.

3. Legal Document

Income Tax return can be used as a Identity Proof and Income Proof, Even when you want to do some change in Aadhar Govt. Accepts it as a Proof.

4. Avoid penalty and punishment

The taxes you pay are governed by the Income Tax Act 1961. So, if you are eligible to pay the taxes but fail to file the income tax returns, you may attract the charges. As a result, the income tax officer can levy you a penalty of up to five thousand rupees, along with other punishments. If you fail to file the returns.

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