Hidden Benefit of Income Tax Return Filling
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 .
CA Ayush Agrawal