What are the Benefits of Filing Income Tax Returns in Dubai?

Have you ever wondered why you should file an ITR or what benefits you could inculcate from it Learn the use of ITR and why you need to file one in UAE.

Learn What an Income Tax Return Actually is:

An Income Tax Return (ITR) is a form which one files reflecting the information about ones income earned and the tax applicable on it to the Income Tax Department. The information filed in the ITR should refer to a particular financial year, starting from 1st of April and ending on 31st of March of the next year.

The department offers various types of forms till date and the applicability of these forms depend on the sources of income of the taxpayer, the amount of the income earned and the category of taxpayers (individual or company).

Income on the basis of which ITR needs to be filed is as follows:

• Income from salary
• Profits from business
• Income from house property
• Income from capital gains
• Income from other sources such as dividend, interest on deposits, royalty income, etc.

If one is an Indian resident or an NRI, they need to file their ITR if ones income exceeds INR 2,50,000/- during the last financial year. If your status is ‘resident,’ your global income is taxable in India. If your status is NRI, your income which is earned or accrued in India is taxable in India.

When the NRIs Should File Their ITR

• When they want to claim the refund
• When they have a loss that needed to be carry forward
• When they want to submit any authority or financial institution
• When they want to avoid any penalty from income tax department and compliance with tax authorities
• When they want to incur any loan
• Even when applying for a visa

It Is Beneficial to File an ITR in UAE To Avoid

• Interest penalty: To avoid the Penal interest as an impact of not filing ITR by due date, as it is charged on Tax Liability Payable, which will lead to double interest.
• Penalty Fee: If the ITR is not filed by the due date, then a penalty fee needs to be paid, which varies from 1,000-10,000 and can incur a case of prosecution provisions.
• Late ITR Late Refund: If one files the ITR late then the process will also be delayed, resulting in late processing of ITR in Refund cases. As the ITR are evaluated on first come first serve basis, it is beneficial to file the ITR way before the due date to have early assessment and refund (if needed).
• No Carry Forward of Losses: If the taxpayer has incurred some losses during the year then as per the provision, same can be carried forward to the next year to set off against future year profits. But if one fails to file the ITR before due date then the taxpayers loses the rights to carry forward the losses.

So it is always beneficial to file an ITR to have hassle-free functioning in the next financial year and Alankit offers you that support to correctly file your ITR in UAE with easiness and with the help of our experts guidance.

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Created on Oct 29th 2021 06:11. Viewed 245 times.

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