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

Filing a return provides an official record of your income and taxes paid, which can be useful for future reference or in case of audits. (Representative image)

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.

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;

• Refunds: If you’ve overpaid your taxes through withholding or estimated tax payments, filing a return allows you to claim a refund. This money can be used for savings, investments, or paying off debts.
• Tax Credits and Deductions: By filing a return, you can claim various tax credits and deductions for which you qualify. These can reduce your taxable income and lower your overall tax liability, potentially saving you money.
• Compliance: Filing a tax return ensures that you are compliant with the law. Failure to file can result in penalties and interest charges.
• Documentation: Filing a return provides an official record of your income and taxes paid, which can be useful for future reference or in case of audits.
• Financial Planning: Filing a tax return helps you evaluate your financial situation and plan for the future. It allows you to assess your income, expenses, and tax liabilities, which can inform your financial decisions.
• Get Benefits For Future Financial Applications: An ITR can be helpful when applying for loans (like a home or car loan) or visas. It serves as proof of your income and financial history, which lenders and agencies consider when making their decisions.
• Avoiding Penalties: Filing a tax return on time helps you avoid penalties for late filing. Even if you can’t pay your taxes in full, filing on time can mitigate penalties and allow you to set up a payment plan with the IRS.

The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Readers are advised to check with certified experts before making any investment decisions.