What is the benefit of filing income tax return? This is the first question when a client ram into the office of a CA or Tax lawyer. Generally professionals have predefined answers like it benefits for Loan, CC limit, or being loyal with the govt etc. But do every one of us know what is the RARE benefits of filing Income tax returns regularly i.e. without any gap? Here is the answer

1. For appointment in Judicial & Class one Jobs

Yes, in Judicial jobs or where a the candidate is a Chartered Accountant or Lawyer and need to demonstrate annual professional income for the Judicial/judge’s,Senior Auditors post.No client data or record of similar work done previously shall matter to the selection body, it is only the last 5 to 7 year income tax returns ( in judicial 7 year ITR record is checked in interview) that shows the candidate’s credibility for he has done good practice having huge clientele of that caliber for the judicial post/class one post.

2. For accidental claim in third party Insurance

Life is uncertain, this is one of the rare benefit of filing the ITR every year.It does not bother if the income barely touches or crossing the taxable limit. If you keep filing ITR of yourself or spouse, just because CA /Lawyer is your neighbour or charge very nominal fee, it can help you in future in case of accidental death of any one member/’s during roadside accident, because during court trial insurance company need the proofs of income to arrive at the amount of accidental claim, if any return is missing, mainly last 3 years, this could lower the claim amount or even no claim because court take ITR as only evidence. No wealth record, FD’s, business etc is given that much importance as compared to ITR in the eyes of law.The formula for claim is by multiplying the Yearly income in ITR with years of expected life of deceased.So next time give special thanks to your tax professional to remind you every year about the regular return filing.Taxability of Motor Acccident Compensation & Interest

3. For immigration profile obtaining visa outside India

This is another benefit of filing your ITR regularly. The High Commissions of various countries or VFS centres across India have huge record of fabricated documents in which income tax returns of visa applicants are one of them. Why, because travel agents forge it or sometimes show it as regular income tax return by charging huge money. Every assessee should file genuine return if intention is in mind to go aboard in future.Use it showing your all genuine source of incomes, because immigration officers give due wheightage to your annual income. Absence of any single year returns can decrease your chances of foreign visa under visitor, investor or work permits category.

4. For eligibility in all Loan cases from Banks

One of the services of all banks either private or Nationalised is to finance the customers in the shape of bank loans, CC Limit or project funding etc. Income tax returns of last three years are the basic need for it except agriculture limits, secondly the PAN is checked over the CIBIL website if Individual or corporate body is not a defaulter in any previous bank. The CIBIL Score plays a critical role in the loan application process.Because this agency keep the record of your instalment payment nature,as it gives the score to your bank which is required for the particular approval of loan case. That is why according to the Supreme court order,hard recovery of all loans is banned, especially in car loans no forceful possession can be taken by the bank. CIBIL just blacklist such customer for all future loans all over India, based on the PAN card number allotted to such loan defaulter.Important Points For Salaried Persons For Availing Bank Loan

5. For obtaining Govt tenders, registration on panels:

As described in point one earlier, the value of business profiles of various corporate agencies, contractors, professional service providers or Individuals is dependent on the yearly income tax returns.Sometime contractors have very good history of procuring heavy projects in their line, be it a service or works contract,but they they lack the knowledge & benefit to file the returns on time or sometimes the returns were not filed on the factual provisions (i.e defected returns). For contractors, these returns needed not only to be filed on time, but must be very much accurate,& audited (if required),these must be signed with necessary documents because in tender- approval meetings or for finalising professional panels, the selection body has ample options to mature the tender in favour of the fittest. Sometimes this work is checked by the tender scrutiny committee and five to seven years ITRs are considered to see whether the applicant has done the work of that much amount earlier or not. So next time to enlarge your business horizon and obtaining more tenders from Govt or private bodies, one need to file the regular returns every year.

(By : Advocate F.S Dhiman, Chief Counsel at Ferry Dhiman & Co. ( corporate law firm, India www.lawferry.com ) contact mail info@lawferry.com)

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  1. Harish says:

    My brother expired recently and did his wife get any benefits (As my brother is paying tax since 4 years). Please let me know on +91 9700131754

  2. Govardhan says:

    My friend is passed away last month. He was a regular tax payer and ITR Filed regularly. What benifit that his wife get from dept.

  3. GOPAL says:

    Sir my father was a regular tax payer, he expired last month. Will I or my mother get any death benefits from government or income tax department

  4. Annapurna says:

    Sir, I am Annapurna My husband passed away last month with cardiac arrest. He was a regular tax payee. 2005 to 2017 and two years he was out of job and again he paid 2018_2019. Now this Jan 18th he passed away… Can I get any benift… Please let me know shall I need to pay tax for this year also?

  5. Surendar says:

    My friend died with cardiac arrest 01Feb2020, he was paying the tax from 2011.

    Will their dependents(Wife/Daughter) are eligible for getting the rear/Death benefits from IT department.

  6. Sonia Sharma says:

    My brother was tax payee… He passed away in a car accident on 11 march 2019. Can my parents get any type of financial help from income tax department….

  7. Seema Choudhary says:

    My brother was income tax payee and in a road accident he passed away on 15th March 2019.
    Can my parents get any kind of compensation from Income Tax department or government of India?

    1. RENJINI says:

      My husband was regular tax payer and he passes away last month. I’m as wife can I get any refund from government for his death

  8. Ashish Pandya says:

    My father has passed away in a road accident.He was an income tax payer as a govt.teacher in Rajasthan Govt.Would my mother have any compensation from Income Tax Department??


    dear sir
    my father was passes away from last year 4th oct 2017.he was regular tax payer for huf and personal can i give refund for government for his death


    PAN NO: AAAHI1728K



  10. Savya Sachi Khanna says:

    Sir, My father had filed I tax return since last 25 years. Now he is expired due to murder. Can I file any claim to Income Tax Deaprtment. Please tell me.

    Savya Sachi Khanna
    Mobile No. 790 620 3891

  11. Arjun H G says:

    My father was an AEE in irrigation department and he is filing ITR for more than 25 years and recently he passed away in an accident during election duty do the family get any benefit.

  12. M Santosh reddy says:

    My father is head conistable he paying regular income tax for last 6 years of annual salary recently he died in on duty with accidental so that we can get any benefits from it side

    1. K L Narain says:

      Whether your father get benefit after death. क्या आपने क्लेम किया था ? अगर किया तो इन्शुरन्स अमाउंट इनकम टैक्स डिपार्टमेंट से मिला क्या

  13. R Pradeesh says:

    Filing income tax gives proof of income and this is conssidered as one strong proof of income in the court when assessing the amount to be rewarded for the victim
    This does not mean that Income tax department compensates, this compensation is to be paid by the insurance company which has insured the vehicle which has hit and killed the victim

  14. Adv.Mayur Shanbhag says:

    thank you sir, i am a practising lawyer and not aware of IT return benefit for professionals such as Lawyers. thank you very much for the article.

  15. sadashiv Gaikwad says:

    for obtaining private agency Such as LIC GIC agents, Previous track record are seen. Property more than 50 lacs TCS automatic traces non filer.

  16. bhavesh savla says:

    excellent article. these facts are really not known usually among people. thanks to author. another benefit of filing returns in time is that returns can be revised.

    CA. Bhavesh Savla

  17. N C Sarangi says:

    Sir, Informative article a common person is unaware of the implications. The NOK should know the status of ITR to use in the eventuality of accidents of the spouse/victim. Thanks for the good work
    Cmde Sarangi (Retd.)

  18. Pravin Navsariwala says:

    As compared to benefits given by other countries in west, these benefits do not provide any incentive to genuine tax payers.
    Besides it is not linked to retirement benefits to tax payers in form of pension unlike other western countries where Pensions are provided to sr. citizens based on tax payers.

  19. B. K. Chhibber says:

    Sir, i myself an advocate practicing in the field of income-tax, but was never avware of these advantages of filing tax return. it is really good that u have made people in general aware of these benefits. u have done a really good work.
    Brij Chhibber

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November 2020