Income tax filing in India comes with a definite array of benefits, beyond simply the fact that you have filed your taxes and therefore, “done your duty towards the nation”.
In fact, there are many ancillary benefits of income tax filing in India, many of which we do not even realize. The aim of this article is, therefore, to apprise you of these benefits so that you keep them in mind and accordingly, make sure to file your taxes, as and when they are due every financial year.
Loan Processing Made Simpler
Among the many criteria against which the grant of loans is approved is income tax filing. In fact, for self-employed professionals, this is a mandatory requirement without which most loans are not granted at all.
So keeping the possible need for loans in the future, it is strongly advised that you make sure to file income taxes. Once income tax filing is done, along with verification and approval by the Income Tax Department, you can breathe easy in the knowledge that anytime you need a loan in the future, at least this particular requirement has already been met.
Credit Card Processing
As with most loans, credit cards are also processed only when there is a record of income tax filing. Yes, there are exceptions to this rule but by and large, in most cases, credit card companies will look for tax filing records to approve credit card issuance.
Again, for self-employed professionals, this becomes all the more necessary since income tax returns are a confirmation of income – and thus the ability to repay credit card debts.
Given the wide array of benefits that come with credit cards, you surely do not want to miss out on having one, and therefore, for this reason, we strongly recommend timely tax returns filing.
Registration of Immovable Properties
When you are looking to register an immovable property, let’s say a home you have newly bought, again, your income tax filing records will be required.
After all, most such property transactions are big-ticket ones. In major metros of India, these are invariably transactions worth Crores of Rupees. In such a scenario, the concerned authorities want to be sure that your sources of income are legitimate and that you have duly paid taxes on your income. For this, of course, tax return filing is essential.
With millions across India dreaming of owning their own home, you can easily join the ranks of all those fulfilling that dream, by filing income taxes diligently.
For a number of different Visas, it is essential that your income tax filing is on record.
If, for example, you look at the Schengen Visa requirements for Indian passport holders, you will clearly find income tax returns to be among the additional documents that you need to submit while applying for your visa.
For many other visas too, tax filing records are necessary.
As you would be aware, tax filing cannot be done overnight, while the need to travel abroad to a location that mandates income tax filing for visa approval can come up anytime.
Therefore, having the necessary forethought in such a situation is absolutely essential.
So, keeping the future in mind where you might want to (or need to) travel to places where tax returns are essential for visa approval, do ensure that your tax returns are filed in time.
Income Tax Filing in India Sets a Precedent for the Future
Once you file income taxes in India, you set a good precedent for the future.
In other words, your records are entered into the Income Tax database. This makes things a lot easier in the future. For instance, as you progressively move with subsequent filings in the coming financial years, things are laid out for you quite smoothly.
Any corrections, changes in your filings can then be made easily. Income tax refunds are also processed quite smoothly.
Income tax filing in India clearly comes with a wide array of benefits. This is beyond the direct and obvious, duty-bound obligation of doing so.
This article would have amply shed light on these ancillaries benefits which we hinted at in the introduction.