If you are a freelancer then you have to file your income tax return because it is possible that you have a Tax deduction at the time of your payout from a business house. Any freelancer earning an annual income exceeding INR 2.5 lakhs is required to file ITR. Even if your income is below this threshold, you can voluntarily choose to file ITR but still we at moneyseth will tell you to file your income tax return for future benefits.
Benefits of filing Income Tax Return for Freelancers
There are many benefits of filing income tax return for a freelancer some the benefits are given below.
Easy Loan for Business Expansion
If you want to expand your freelancing business in future then you may require funds for this. Whenever you ask for Business loan to bank then such bank will ask you to give last year ITRs for sanctioning the loan.
TDS Refund
If you have any TDS deduction in your freelancing then such tds can be refunded back to your bank account after filing income tax return on timely basis.
For buying Term Insurance Plan for high Maturity amount
Many times if your sum assured is higher in terms of insurance company then such insurance company can ask you to provide income tax return for validating the sum assururance in a policy.
Carry forward of Losses
Suppose if you have a loss in a partulcar year then you can carry forward such losses for adjusting it with future profits. But adjustment of losses with future profit is only available if you have filied the ITR in earlier years.
Quick Visa Processing
Suppose if you want to visit a country for your freelancing business purpopse then some of the developed countries embassy will ask you to provide the income declaration proof for visa purpose then ITR will help to declare your income.
