Getting loans approved from lenders is easier when you file your Income Tax Returns on time.
A copy of the ITR statement is required by banks as proof of income when borrowers apply for loans.
If an individual does not file a tax return, they may have trouble getting a bank to approve them for a loan.
If you file your ITR before the due date, you can carry over losses to the next financial year. It allows taxpayers to reduce their tax liability on future income.
If you are applying for a visa at an embassie, most require you to submit your ITR history.
An application for a visa is processed more smoothly if you have a clear tax record.
A late ITR filing can incur a 10,000 penalty and other penalties under the Income Tax Rules.
Section 234A of the Income Tax Act 1961 also provides that interest may be charged if ITRs are not filed on time.
You may be notified by the Income Tax department in case of delay or default.
It is also possible that a legal action may be taken if the I-T department is unsatisfied with the response to the notice.
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