5 advantages of filing ITRs on time: Here’s why you should submit income tax return before deadline

As per tax laws in India, it is mandatory to file your ITR or income tax returns because it serves as a form used to file information about your income and tax to the Income Tax Department.

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New Delhi: Since the last date (i.e. 31st July) to file your ITR is approaching, being a responsible citizen of India, one should file an income tax return. ITRs are filed annually by taxpayers who make a taxable income within a pre-determined due date. Individuals can visit the official website of the Income Tax Department at www.incometaxindiaefiling.gov.in to file their ITRs.

As ITR filing is underway, let's see what advantages taxpayers get in return for filing it on time: 

1) Identity Proof: The income tax return can serve as identity proof in various forms such as while applying for any bank account, an Aadhaar card, or any other document. It is also accepted as address proof for multiple purposes like getting admission to colleges and getting benefits from various governmental schemes.

2) Income Proof: As we know that we file ITR based on our annual income. It includes every detail of our source of income, so it can serve as proof for doing transactions while purchasing a property.

3) Makes Loan Approval Easy: While applying for a loan, banks generally ask for income proof and ITR documents of a few years so that they can assess your past and present financial status to make sure whether you would be capable of repaying it or not. 

4) For getting a Visa: ITR filing makes getting your visa easy as the Embassy takes note of the individual's financial status while assessing the application. If you file your ITR on time and have a good past history of doing it on time, it would be useful to get your visa easily.

5) Proceed with losses: In order to lower tax liabilities of future income, the income tax rule allows the taxpayers to forward the losses to the next financial year. So, business can carry forward the losses to be paid on the future income. Hence, Filing ITRs on time help set off losses.