04 Oct
9 BENEFITS OF INCOME TAX FILING OF SELF EMPLOYED PROFESSIONALS FREELANCER IF TOTAL INCOME IS BELOW THE EXEMPTION LIMIT
9 BENEFITS OF INCOME
TAX FILING OF SELF EMPLOYED, PROFESSIONALS, FREELANCER IF TOTAL INCOME IS BELOW
THE EXEMPTION LIMIT
1. ITR
Receipt - Important Documents:
It is
important to have a receipt for the ITR as it has more details of business income,
income from house property, Income from Capital Gains, Form 16 & another
source of income
2. Claim
a Tax refund
There
may be a possibility to Tax Deducted at Source (TDS) tax on certain investments
made in an individual's name or TDS deducted on some services that have been
provided. If TDS is deducted, an ITR has to be filed for that tax refund.
Example FD in Banks, Works contract, Professional services etc
3. The
loan process becomes easier
When
you apply for loans like auto, home loan, business loan, etc., filing income
tax regularly makes it easier for banks to determine your income source.
Generally,
banks need ITR paper for the last 3 years to help them determine where loan
applicant’s income comes from.
4. When
taking a credit card:
Bank
may reject your new credit card application if you have not filed your ITR.
5. Trouble-free
visa application process:
Sometimes
visa officers ask for copies of previous tax returns so it is necessary to file
a tax return to apply for a visa. Embassies, especially the US, UK, Canada,
etc. When processing your foreign visa application, pay special attention to
your tax compliances
6. Buying
an insurance policy with high cover:
Now
that term insurance is being taken by most people, if you are a tax evader and
have not filed an ITR, they will not high cover your policies anymore
7. Establishing
Proof of Income - Self-employed and Freelancers, Businessman:
People
who work freelance or are self-employed do not have Form 16 for income proof.
ITR copies are just a document to show that they have filed an Income tax.
Otherwise, they may face financing and transactional problems.
8. Helps
to avoid additional interest:
If
you do not file an ITR, the late return may result in an additional liability
interest of 1% each month under Section 234A for the remaining tax payable by
you.
9. Avoid
fines or scrutiny by the income tax department
Section
234F has been introduced from the financial year 2017-2018 to ensure that the
return is filed within the due dates. From the financial year 2017-2018, a
penalty of Rs 10,000 will be levied for non-filing of Income-tax return (ITR).
Conclusion
I
have been working in this field for the last 10 years and in my experience
filing income tax has helped most people to buy a house, buy a car and rise
suddenly need big money etc etc
So, it's always advisable to file your ITR on time.
The
author is Santosh Patil, he is CEO & Director @ Alliance Tax Fin Experts
Services Pvt Ltd.
Alliance
Tax Experts is a one-stop solution for all your Financial Needs. We are the
leading Income Tax, GST & Company registration services provider in Mumbai,
Navi Mumbai & all over Maharashtra, India.
We
provide consultancy start from Company Registrations, Income Tax Filing,
Accounting, GST Filing, Income Tax Audit, GST Audit services. We offer
comprehensive compliances services for proprietors, partnerships, Private
limited companies, limited liability partnerships, OPC private limited Companies,
Trust and Individuals.
For
any query, you may reach us on santoshpatil@alltaxfin.com
or call on 9769201316
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