Individual ITR

Income Tax Return is the form in which an assessee files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not allowed to carry forward certain losses.

The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year. These returns should be filed before the specified due date. Every Income Tax Return Form is applicable to a certain section of the Assessees. Only those Forms which are filed by the eligible Assessees are processed by the Income Tax Department of India. It is therefore imperative to know which particular form is appropriate in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assessee and the category of the Assessee.

Advantages

For an Accidental Claim in Third Party Insurance
Filing of ITR can help an individual in the future in case of accidental death of any member during a road accident. During the trial of the court, insurance companies ask for the proof of income to arrive at the amount of accidental claim and if return is not filed for the previous years then it could lower the amount of claim or even a zero claim, as insurance companies only consider Income Tax Return as evidence (ITR). In the eyes of law, no wealth record, fixed deposits, business etc. are given as much importance as it is given to filing of Income Tax Return (ITR).

For Applying for Loans from Banks
If an individual applies for any loan such as a housing loan, personal loan etc. then the bank will ask to furnish the ITR of the last three years as a proof for the declaration of income. Before granting the loan, the bank wants to know the financial capacity of the individual from the income details as shown by the individual in the Income Tax Returns.

For Obtaining Government Tenders
The value of Business Profiles of various professional service providers, contractors, corporate agencies is dependent on the yearly Income Tax Returns (ITR). The returns must not only be filed on time but should also be filed in an accurate manner, signed and enclose all the necessary documents. If anyone wants to expand his business and obtain more tenders from the government, one needs to file a return every year.

For Obtaining Visas for Outside India
The high commission of various countries maintains the record of the documents including Income Tax Returns (ITR) of visa applicants. The objective behind this is to know whether you are financially sound before the visa is issued which is why they depend on the ITR of the immigrant. Every individual is required to file a genuine return if they want to go abroad. Failure to file for return of the past years may lead to a lower chance or being issued a foreign visa or a work permit in a foreign country.

For the Appointment to Judicial Jobs
A candidate who is a lawyer or a Chartered Accountant, who wants to continue in the profession is required to present the annual profession income tax return. The candidate’s credibility is checked, based on the last five to seven-year ITR. In a judicial interview, last seven-year of ITR records are checked.

For Funding Start-Ups
Investors not only want to know about the profitability but also about the scalability, various cost parameters and the validity of the data which is produced from the auditor’s report.

For Obtaining LIC Agency
All insurance corporations before allotting an agency check the financial condition of the agent. Previous three year’s Income Tax Return (ITR) is called for before allotting any agency.