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

 

#incometax #taxes #tax #taxseason #gst #business #accounting #accountant #finance #taxrefund #taxprofessional #taxpreparer #incometaxreturn #smallbusiness #taxreturn #incometaxindia #incometaxseason #entrepreneur #icai #money #ca #charteredaccountant #taxpreparation #taxplanning #bookkeeping #irs #india #taxtips #covid #bhfyp #alliancetaxexperts #taxconsultant #taxexperts


Find the Solution That Best Fits Your Business