What is the benefit of filing income tax return? This is the first question when a client ran into the office of a CA or Tax lawyer. Generally professionals have pre-defined answers for this, as it benefits for Loan, CC limit, or being loyal with the govt etc. But do every one of us know what are the RARE benefits of filing Income tax returns regularly i.e. without any gap ? Here is the answer
1. For job appointment in Judicial & class-one Jobs
Yes, in Judicial jobs or where a Chartered Accountant or Lawyer needs to demonstrate annual professional income for the Judicial/judge’s post or 'Senior Auditors' post, no client data or record of similar work done shall matter to the selection body. It is only the last 5 to 7 years income tax returns (in Judicial appointments 7 year ITR record is checked in interview) that shows the candidate’s credibility, for he has done good practice & supposed having huge clientele of that caliber for the judicial post/class one post.
2. For accidental claim in third party Insurance claim
Life is uncertain, this is one of the rare benefit of filing the ITR every year. So do not bother if the income barely touches or crossing the taxable limit. If you keep filing ITR of yourself or spouse, just because CA /Lawyer is your neighbour or charge very nominal fee, it can help you in future in case of accidental death of any member/'s of family during roadside accident, because during court trial, insurance company need the proofs of income to arrive at the amount of accidental claim, if any return is missing, mainly last 3 years , this could lower the claim amount or even no claim will be given because court take ITR as only evidence. No wealth record, FD’s, business etc is given that much importance as compared to ITR in the eyes of law. The formula for claim is by multiplying the yearly income in ITR with years of expecting life of deceased. So next time give special thanks to your tax professional to remind you every year about the regular return filing.
3. For 'Immigration - Profile' obtaining visa outside India
This is another benefit of filing your ITR regularly. The High Commissions of various countries or VFS centres across India have huge record of fabricated documents in which income tax returns of applicants are one of them. Why, because sometimes travel agents forge it or show it as regular income tax return by charging huge money. Every assessee should file return if intention is in mind to go aboard in future .Use it showing your all genuine source of incomes, because immigration officers give due weightage to your annual income. Absence of any single year returns can decrease your chances of foreign visa under visitor, investor or work permits category.
4. For eligibility in all Loan cases from Banks
One of the services of all banks either private or Nationalised is to finance the customers in the shape of bank loans, CC Limit, project funding etc. Income tax returns of last three years are the basic need for it except agriculture limits, secondly the PAN is checked over the CIBIL website if Individual or corporate body is not a defaulter in any previous bank. The CIBIL Score plays a critical role in the loan application process. Because this agency keep the record of your installment payment nature, as it gives the score to your bank which is required for the particular approval of loan case. That is why according to the Supreme court order, hard recovery of all loans is banned, especially in car loans no forceful possession can be taken by the bank. CIBIL just blacklist such customer for all future loans all over India, based on the PAN card number allotted to such loan defaulter.
5. For obtaining Govt tenders, registration on panels: