Many believe filing the Income-tax return (ITR) is not important if the earnings are below the taxable threshold. However, ITR works as proof of earnings and cumulative taxes, like TDS, charged to the person throughout the year. In India, ITR is mandatory to claim all deductions (Under Chapter VI) and exemptions on long-term capital gains arising from the sale of house, shares and other capital assets. If the total earnings exceed the exemption limits, the ITR must be filed.
However, there are many other benefits of filing ITRs on time. Here are five of them.
Getting bank loans