- To obtain a loan from a bank: When applying for a loan to purchase a house/car or medical treatment, the ITR for the previous three years is a must.
- To obtain VISA: Embassies of some foreign countries like the UK, US, Canada, and Australia ask for ITR receipts of the previous year to process VISAs. It helps to assure them that you are capable of taking care of yourself while you reside in those countries.
- The income tax officer can initiate proceedings for prosecution for a term of 3 months to 2 years and with a fine if you don’t file your ITR. If the tax you owe is higher, the period may extend to 10 years. Further, the income tax officer may impose a penalty of up to 50% of the tax due in the case of under-reporting of income.
- As per section 206AB of the Income tax Act TDS/TCS will be deducted at higher rate if income tax return is not filed for the relevant year.
Importance of filing Income Tax Return
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