- – On time filing avoid penalties
The Income Tax Department levies a penalty onassesee’s for non filing of tax return within the prescribed due dates. It may extend upto Rs 10000.
- Tax credit claim –
In order to avail the tax credit out of the taxes paid in India when filing the foreign tax returns this will be the proof of payment of taxes. .
- Bank loan can avail easily
To avail the loans banks and financial institutions ask for the credit score and the previous year tax returns. So if you intend to avail loans filing of tax return is must.
- Mandatory for Visa processing
. One of the important document required for visa processing is the tax return filed by you as it helps to assess the financial credibility and status to estimate whether you are in position to bear your expenses or sponsored.
- Compensate losses in the next financial year
Assesseecannot carry forward losses of the current financial year to the next financial year until an tax return is filed. As per the income tax Act, assessee are not allowed to carry forward losses and set them off against future years’ income if the tax return is not filed within the prescribed due date. Hence, it is important to file your income tax return on or before the due date in order to carry forward and set off the losses in future years.