Income Tax News: Many people think that paying income taxes is only appropriate for those with really high incomes. However, it’s not required. A return of income can be filed by anyone. Financial counsellor Shikha Chaturvedi says that regardless of your tax bracket, you have to file income tax returns. In actuality, upon filing their income tax return, taxpayers receive a certificate.
Certification of Citizenship and Annual Income Disclosure
This official document certifies your citizenship and discloses your yearly income. It also attests to your responsibility as a citizen. In addition, submitting an ITR now will help you and your family in the long run. Learn about these five major advantages.
Loan Application in Modern Finance
Nowadays, most people take out loans to launch a business or to purchase a home, piece of land, or automobile. Your proof of income is requested at the time of loan application. Those who are employed in this scenario can still present their pay stub from the employer, but how can unemployed persons prove their income? A copy of the last two or three years’ income tax returns is helpful in this case and makes it simpler to obtain the loan.
Visa Application Essentials
Obtaining a visa is mandatory for travel to another nation. When granting a visa, the United States and certain other developed western nations request a copy of the applicant’s income tax return. The financial standing of a person who wishes to visit or is travelling to his nation is verified by ITR. A copy of their parent’s or guardian’s ITR may be provided to those who are unable to earn money on their own.
Significance of Third-Party Insurance
When it comes to third-party insurance, the insured person’s income determines how much is guaranteed to support the insured’s family in the event of an accident. The insurance company requests documentation from the deceased’s family detailing their income during the court procedures. A copy of the ITR is useful in this kind of circumstance. This makes it simple for the deceased’s relatives to file an insurance claim.
Launching a Business and Government Contracts
It is crucial that you file an ITR if you are launching a business and hope to secure a contract from any government agency. A valid ITR for the previous five years is also required to be hired by any government agency.
Insurance Policy Requirements
You must present the ITR receipt for any insurance policy you purchase that costs more than Rs. 50 lakh or Rs. 1 crore. You would be required to provide ITR documentation to LIC, particularly if you purchase a term policy for at least Rs 50 lakh. This determines whether or not you can obtain insurance for a sum this large.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER