Income Tax Return (ITR) is a form which a person is supposed to submit to the Income Tax Department of India. It contains information about the person’s income and the taxes to be paid on it during the year. Information filed in ITR should pertain to a particular financial year, i.e. starting on 1st April and ending on 31st March of the next year.

Here are some reasons why you need to file income tax in India:

• Filing of ITR creates a valid proof of income.
• ITR is required for applying for any loan in the future.
• If any excess TDS deducted, then to claim TDS refund.
• ITR is required by banks even for applying credit cards.
• ITR is required for VISA applications etc.
• You may be eligible for tax breaks or credits.
• The tax authorities may want to verify your income and assets.
• You may need to pay back the taxes that you owe.
• You may be required to file a return if you have foreign assets or income.
• Filing an income tax helps the government decide the means and amounts of expenditure of citizens.
• When the government has realistic data, it helps in creating citizen-friendly policies.

Filing Income Tax Return is important as Income tax papers are an important document.  It can be beneficial when applying for various loans such as vehicle loans, home loans, personal loans etc. It also helps in claiming tax refunds.