If your income is below the tax exemption limit, you are not obligated to file an ITR by law, but you will miss out on several benefits if you do so. As a result, tax experts recommended that everyone submit an ITR.
Income Tax Return: The deadline to file a tax return for the fiscal year 2020-21 is December 31, 2021. If you have not yet filed your income tax return, do so as soon as possible. Anyone under the age of 60 who earns less than Rs 2.5 lakh per year is free from paying income tax. Anyone with a total income that exceeds the tax exemption limit is required to file a tax return.
Everyone knows that the tax exemption limit for senior citizens aged 60 to 80 is Rs 3 lakh, while the limit for super senior citizens aged 80 and more is Rs 5 lakh. Even if your salary is below the income tax threshold, you should still submit an income tax return because it offers numerous advantages.
1. The loan eligibility is established.
If you apply for a loan, the bank will assess your eligibility, which is dependent on your income. The amount of loan the bank will provide you is determined by the amount of income you have reported on your tax return. In reality, an ITR is a document that all banks use to expedite loan processing. During loan processing, banks often require three ITRs from customers. If you want to buy a property with a home loan, or if you want to acquire a car loan or a personal loan, you must file an ITR since it makes it easier to get the loan.
Read More: Bad News for IPL 2022! Because of this, BCCI is in ‘tension’
2. Tax Refund Requirement
You can save tax on interest earned on savings plans such as term deposits if you file an ITR. Dividend income can also be taxed more efficiently. If your total income from several sources of income exceeds Rs 2.5 lakh, you can claim the deducted TDS again through an ITR refund.
3. A valid address document and evidence of income
Proper address proof is an Income Tax Assessment Order. It’s also possible to produce an Aadhar card with it. The corporation issues Form-16 to its employees. That is his evidence of income. The ITR filing paperwork serves as acceptable income evidence for self-employed or freelancers as well.
4. Is it possible to file a loss claim?
To claim any loss, a taxpayer must file an income tax return within a certain time frame. This loss might occur as a result of capital gains, a business, or a vocation. The loss can be carried forward against capital gains if you submit an ITR in the applicable assessment year.
5. Documents for visa processing are also necessary.
Most countries require ITR if you are traveling internationally. This demonstrates that the individual is a tax-aware citizen. This provides the visa officers with a comprehensive picture of your present financial condition and earnings. It will be easier for you to obtain a visa as a result of this.
