The department of Income Tax is making all efforts to increase the number of taxpayers in the country wherein merely 1% of the total population pays income tax. From Aaykar Setu App , MyTax App to Sahaj form, the government is constantly making ITR filing process simpler. For the financial year 2016-17, the due date for filing tax return is July 31.
Even in the case when you do not earn enough and fall under the lowest income tax slab rate, filing income tax return comes in handy as it is required as proof in some of the financial transactions.
1. For applying loan from financial institutions- In general, banks and NBFCs ask for ITR copies of last three years as proof of income. This is done to establish the applicant's repayment capacity i.e. both principal and interest payments. Nearly for all categories of loan i.e. home loan, vehicle loan etc. ITR's are required.
2. For processing of VISA- VISA application is also processed after the applicant furnishes the ITR filed for last 2-3 year as this shall serve as a testament of their steady income flow on which the applicant has even paid taxes.
3. Immovable property registration- In some of the states in India, while a property is being booked for purchase and concurrently at the time of its registration, ITR is asked for.
4. Applying for insurance and credit cards- Some of the small banks and financial institutions, ask for ITRs to ensure about the repayment capacity of the applicant. Also, in cases when insurance is being purchased, insurers in certain instances ask for ITR documents.
So, in case if you are still deferring your income tax filing procedure then remember you do need ITR as proofs at some of the above mentioned places.