ITR Filing For 2023-24: Check Benefits Of Filing Your Income Tax Return

Filing income tax returns is not just a legal obligation but also a civic responsibility. It demonstrates your commitment to the development and well-being of your nation by contributing your fair share towards its growth. By fulfilling this duty, you actively participate in the functioning of the government and the provision of essential services to citizens.

Also Read: Income Tax Return Filing: Confused Between ITR 1 And 4 Forms? Clear All Doubts Here

According to the income tax department, filing income tax returns is your duty and earns you the dignity of consciously contributing to the development of the nation. Apart from this, your income-tax returns validate your creditworthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, etc.​​

Know the key benefits of filing ITR;

• Compliance with the Law: Filing income tax returns is mandatory for individuals whose income exceeds the threshold set by the Income Tax Department. By complying with this requirement, you avoid penalties and legal consequences.
• Claiming Tax Refunds: If you’ve paid more taxes than necessary through TDS (Tax Deducted at Source) or advance tax payments, filing a return allows you to claim a refund. This can be especially beneficial if you have investments or expenses that qualify for deductions or exemptions.
• Access to Financial Products: Many financial institutions, such as banks and NBFCs (Non-Banking Financial Companies), require proof of income tax returns as part of their documentation process for loan applications. Having a history of filing returns enhances your credibility and increases your chances of securing loans, credit cards, and other financial products.
• Creditworthiness Assessment: Filing income tax returns helps establish your financial credibility and creditworthiness. When you apply for loans or credit facilities, lenders often review your tax returns to assess your repayment capacity and risk profile.
• Claiming Deductions and Exemptions: Filing a return allows you to avail deductions and exemptions available under the Income Tax Act, such as those for investments in tax-saving instruments (e.g., Provident Fund, ELSS), payment of insurance premiums, donations to charitable organizations, and expenses related to housing loans and education.
• Avoiding Scrutiny: Filing returns regularly reduces the likelihood of being subjected to scrutiny or investigation by the Income Tax Department. It helps maintain transparency in your financial affairs and reduces the risk of being flagged for potential tax evasion or non-compliance.
• Financial Planning: Filing income tax returns provides a comprehensive record of your financial transactions, income sources, and tax liabilities. This information is valuable for financial planning, budgeting, and decision-making regarding investments, savings, and expenditures.
• Availing Government Benefits: Certain government welfare schemes and subsidies require proof of income, which can be furnished through income tax returns. By filing returns, you become eligible for various social security benefits, subsidies, and entitlements provided by the government.