1) Residence Proof: A tax assessment order can be used as a proof of residence for applying for Aadhar or passport.
|2) Hassle free loan processing: Generally, income tax returns of last three years are required, if a person intends to take any housing loan, education or vehicle loan from the bank.|
| 3) Processing credit card applications: Copies of tax
returns are also required as proof for processing credit card |
|4) Recording of high-value transactions: High-value transactions such as purchase of property, buying a car, investing in mutual funds, etc., are reported to the income tax department. So, by filing income tax returns, one can report these transactions & substantiate the same as per one’s income.|
|5) Refund of TDS: If TDS is deducted from one’s income, and then the filing of income tax return is required to claim TDS.|
|6) Carry forward of losses: If a person has incurred a loss from sale of capital assets, house property income, loss from business/ profession, then carry forward of the same to subsequent 8 years, for set off against other income can be done if that person has filed income tax return within the prescribed due dates.|
|7) Visa processing: Filing of income tax return is a mandatory requirement for the processing of visa.|
| 8) Claiming additional deductions: If a salaried person has filed
income tax return, then he can claim additional |
deductions which are not considered by his employer while deducting TDS.
|9) Avoiding additional interest rates: If a person has not filed income tax return, then a belated return could incur additional interest at 1% per month for the balance tax payable.|
|10) Avoid penalties: Rs. 10,000/- would be charged for non-filing of income tax return. Also in addition to taxes and interest, there could be prescribed penalties ranging from 50 to 200% in certain cases.|