Here’s why you should go through the hassle
MUMBAI:FILING income tax returns (ITR) may seem like a task, but it comes with benefits. Here’s how: supporting ITR, along with the loan application. For instance, State Bank of India asks salaried individuals to give a copy of Form 16 for previous two years or IT Returns for the past two financial years, acknowledged by the income tax department. In case of non-salaried applicant, the bank asks to submit IT returns for the past three years. the country you are going to. For example, if you are going to the UK, US or Canada, you will have to submit ITR receipts along with salary slips and other documents. Some countries also accept bank account statements to issue visa. Your ITR receipts and account statement give the visa-issuing authority an idea of your source and quantum of income. annual salary ₹2 lakh. Your employer cuts a TDS of ₹2,000 at a tax rate of 10%. Your tax deducted at source amounts to ₹24,000 in a year.
Due to TDS incident, you are earning less salary. This means you are paying tax, despite not falling under any tax bracket. You need to intimate the income tax department about this. For this purpose, you have to file an ITR. So, filing an ITR becomes must if you want to claim a refund of ₹24,000. Tax authorities will refund the amount.
WHY IS IT IMPORTANT?
While filing ITR, you have to disclose your capital gains if you have had any, owing to sale of property, selling equity or mutual funds. Depending on the asset and tenure, you will have to pay short-term capital gains tax and long-term capital gains tax. While calculating the gains to pay tax, the cost of acquiring the asset is deducted from the overall value when
you sell it.