Income Tax: Five places where you need to show ITR copy as proof
Even if you don't earn enough to be in the lowest income tax bracket, you should still file income tax returns as its copy is required for many financial transactions.
In India not even 1% of population pay Income Tax and the government is trying hard to improve the numbers. From introducing Form- SAHAJ to Aaykar Setu, the government has made Income Tax Return (ITR) filing process more simpler.
The deadline for ITR filing for the financial year 2016-17 is just 10 days away. If you have not done it then we tell you five reasons why you should do it right now.
Even if you don't earn enough to be in the lowest income tax bracket, you should still file income tax returns as its copy is required for many financial transactions.
1. Applying for VISA processing: Chetan Chandak, Head of Tax research, H&R Block India, said, you are required to produce copies of ITR filed for the last 2-3 years in order to testify that you have a steady income on which you have even paid taxes.
2. While applying for a loan – You need to submit ITR copies for the last three years as a proof of income. While giving loans, banks are mostly concerned about your repayment capacity of the applicant. And for the same, they ask ITR.
Banks generally ask for ITR copy for giving any loan like whether it is a home loan, or vehicle loan.
3. Registration of immovable property in some states: In India, there are some states that ask of ITR during the registration process. This has been seen in real estate sector while booking a property.
4. Applying for credit cards and insurance: Some banks especially the small banks ask for ITR documents before giving a credit cards to its customers just to make sure about payable capacity of the applicant. Also, for insurance there are banks which do ask for three years of ITR copy.
So, if you are still waiting for the right time and delaying ITR filing process, then remember you may have to show ITR proofs at these places.
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