What is Income Tax in India

 

        What is income tax

An income tax is a tax imposed on individuals or entities in respect of the income or profits earned by them.

 

2.   Benefits of paying income tax

  • Visa applications

If you are planning to visit countries like USA, UK or Canada, it is mandatory to provide Income Tax Return (ITR) of at least 2-3 years to get your Visa approved

  • Loan approval

Most big-ticket loans like Home Loans also require you to submit copies of your ITR. As your income is one of the most important considerations for loan approval, lenders confirm the same with the help of your ITR.

·         Income proof

For self-employed professionals, like consultants, firm partners, or freelancers, the ITR receipt also functions as their proof of income.

Location: India

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