Faster clearance of house loan application if you file returns on time

Mumbai: The income tax department has further simplified the process of filing income tax returns from this assessment year. The decision was taken keeping in view as the number of tax payers who file returns has abysmally been low.

Presently, a meagre 1 per cent of India's population files income tax returns that has kept tax authorities on their toes. Out of 29 crore people eligible for paying tax, merely 6 crore people paid tax.

Here are a few things that a taxpayer needs to know about the entire process and what benefits early filing of income tax returns they will get.

1) Filing of income tax returns is compulsory under Income Tax Act. Early filing of taxes brings along with it a number of perks and benefits for taxpayers. For instance, if you have applied for a housing or educational loan or are seeking registration of an immovable property, your papers will be cleared faster.

2) Your visa application will also stand eligible to get faster clearance if you have been an early bird and an honest taxpayer.

3) Banks will refuse to issue you a credit card if they found out that you are not a regular taxpayer.

4) A dully filled tax returns documents can serve your requirement of showing monthly or annual income.

5) By filing income tax regularly you become contributor to national income of the country.

The changed rules in filing taxes intends to streamline the income tax filing procedures as the exercise had earlier proved to be tedious for taxpayers with multiple forms and columns that were needed by taxpayers to fill.

Among other simpler things, the tax authorities have printed a one single-page form for taxpayers. People with an annual income of up to Rs 50 lakh and who alos possess a single house property are end target of this single page form.

The simplified form that majority of taxpayers will be required to fill and submit with the tax authorities is Income Tax Return (ITR) – 1 SAHAJ form. According to a report in Business Standard, assets and liabilities section has completely been removed from SAHAJ.

ITR forms ITR-2, ITR-2A and ITR-3 have been merged into a single ITR-2. ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam), the report said.