The last date of July 31 to file the Income Tax Return ( ITR ) for the current Assessment Year 2022-23 or Financial Year 2021-22 (FY22) is fast approaching. Filing ITR is a mandatory requirement for all income earners as it allows the government to assess whether the tax paid on income earned during a financial year is accurate. Taxpayers must submit their ITR for FY 2021-22 online before the end of the deadline to avoid any fine or penalty.

For taxpayers whose accounts need to be audited, the deadline is October 31. ITR Filing for FY 2021–22 (AY 2022–23): Know Last Date to File Income Tax Return for Individuals, HUF, Firms And Penalty If You Miss Deadline

Here are some of the benefits of filing ITR.

1.  It makes loan processing easier.

 Suppose you want to apply for a home loan or any other loan (other than mortgage). In most cases, a lender will ask for income proof before sanctioning a loan. The process will include submitting your income tax returns for the last two or three financial years.

2.  It helps you claim any carried forward losses.

 If you have incurred losses under the heads “Capital Gains” or “Profits and Gains from Business or Profession” and want such losses to be carried forward to the next financial year, you can do so only by filing your income tax return. ITR Filing for FY 2021–22 (AY 2022–23): Form 16, E-Verify ITR Return and Others; 5 Things To Keep in Mind While Filing Income Tax Returns

 3. It allows you to claim TDS refunds.

 If your employee deducts tax at source or you have a contractual agreement that invites TDS, you can claim a deduction for the same by filing your income tax return for the year within the deadline (July 31 or as declared of the succeeding year). In such cases, the income tax department calculates your net tax liability after adjusting the TDS paid. If you are not required to pay tax, you can claim a refund by filing your ITR. You can track your refund by checking your income tax return status.

4. It will help you with visa or credit card applications.

 If you are applying for a visa for an international trip or a credit card, the issuer will demand income proof from you. In most cases, you are required to submit your income tax returns for the last three years. It will help the other party ascertain if you are eligible for a visa or a credit card. If you intend to visit countries like the USA, Canada, or any part of Europe, you must submit your ITRs during the verification process.

5. Purchasing life insurance

Insurance providers demand to see proof of income from those looking to buy a large cover in order to establish their annual income. The size of the cover is dependent on the size of the annual income of the person seeking the insurance.

(The above story first appeared on LatestLY on Jul 17, 2022 10:52 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).