Yesterday my client asked me the question about benefits of filling income tax return.He was arguing, ” I am salaried employee and his income is less than Rs. 5 lakhs and TDS is already deducted. So there is no need to file income tax return.”I have explained some points to him which I have presented in this article. I hope it will help you to understand income tax return filling benefits.

7 benefits of filling income tax return:

Fast refund processing:

TDS is one of the most important reason for filling of income tax return. My 60% clients are filling income tax return to get TDS refund back. You may aware of the fact that if your income tax payable from the year is less than sum of  TDS deducted and advance tax paid, you can get TDS refund ( income tax refund) back in your bank account by filling of income tax return. By filling return accurately, you can get refund within 6 to 12 months.

Contribution to nation:

Your paid tax amount is contributed to government revenue and indirectly you are contributed to various schemes of government for helping poor and needy. I know you may say the money is manipulated by politicians but it is not 100% true. Government allocate the fund for various projects and it is also utilized. ( some exception). So as a true Indian, help needy people by small contribution of tax. ( We make lots of unnecessary expenses during the year then why should we say no to taxes?)

Fast loan processing:

To get business loan, housing loan, education loan, it is mandatory to produce last 2 years or 3 years income tax returns copy. Income tax return is standard income proof. If you have not get your income tax return filed, it is difficult to get loan.

Getting VISA :

Visa process requires 2 or 3 years income tax return copy. when you have not it, forget the dream to work abroad or get education abroad. ( Indian talents are compelled to work outside India due to lower pay of Indian employer and bad work environment. I think government should take any steps to increase the quality of work environment of employees. )

PAN ka chakkar:

Ok. So you have got the PAN and you are very happy to quote it in various financial transactions like purchasing securities, selling land, travelling, opening bank account. But remember that all the transactions are traced through PAN by income tax department. AIR transactions during the year are shown in form 26AS. So there is no point of concealing income and saving tax amount. If your case opens by income tax department, it will be costly to you.

It is mandatory:

If your taxable income is more than Rs. 5 lakhs during the year, it is mandatory to file income tax return. Non filling of income tax return attracts difficulties mentioned in point below.

Save from interest and penalties:

If you do not file income tax return and pay income tax, interest u/s 234A, 234B, 234C will be levied to you. There are also provisions of penalties for non filling of return and conceiling the income tax. So understand benefits of filling income tax return and stay tension free.

It is affordable and easy:

Due to e filling income tax return is easy. However, if you do not want to read long tax rules of income tax, you can available our online income tax filling services and stay tension free for tax compliance. The good thing is that our plans are flexible as per income and complexity of case.


File my return

You can file income tax return up to 2 years from end of the previous year. If you do not utilize the period, it is not possible to file return or getting income tax refund back. It is advisable to get help of Expert ( CA) for tax filling for saving from penalties and unnecessary revisions. If this article is helpful to you, share this on social media.Fill this form to get filled your return. – Link.



3 thoughts on “7 Benefits of filling income tax return

  1. Hi

    what is the status of contract Labor service receiver when service provider charge full rate ie 12.36% as service tax and deposit it

    what is the liability of service receiver as the service is covered under reverse charge mechanism.

    1. Reverse charge will be applicable when service receiver is corporate. Otherwise service provider will charge service tax fully. No liability under RCM for service received.

      If service receiver is corporate and provider is individual, inform service provider that no service tax should be levied in bill and corporate needs to pay service tax 12.36% under RCM.

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