Even if your income is below the tax-free limit, you will still need to file an ITR. By law, you are not required to file an ITR, but by doing so, you will lose many of your benefits. This is why tax experts recommend that everyone file an ITR.
If your income is not subject to income tax, you are not required to file an ITR by law. But, if you do this, you will miss out on many benefits.
Everyone knows that the tax exemption limit for seniors over 60 years old and under 80 years old is Rs 3 lakh while for super seniors . over 80 years old the limit is Rs 5 lakh. But even if your salary is below the income tax limit, you still need to file a tax return because it has many advantages.
Benefits of filing ITR
- Loan eligibility is decided
If you are going to take out a loan, the bank will check your eligibility, based on income. The amount the bank will lend you depends on the amount of income that you have filed on your tax return. In fact, the ITR is a document that all banks use to facilitate loan processing.
Normally, banks require 3 ITRs from their customers when processing loans. Therefore, if you want to buy a home with a home loan, or if you want a car loan or personal loan, file an ITR as this will make it easier for you to get a loan.
- Claim a tax refund
If you deposit an ITR, you can save tax on interest earned from savings plans such as time deposits. Taxes can also be saved on dividend income. You can claim the tax through an ITR refund, if the total income from multiple income sources exceeds Rs 2.5 lakh, then you can claim the deducted TDS again.
- Valid documents of address, proof of income
An income tax assessment order may be used as proof of a valid address. It can also be used to generate Aadhar cards. Form 16 is issued to employees by the company. It’s proof of his income. Even for freelancers or freelancers, the ITR filing document serves as a valid proof of income.
- Can claim loss
Taxpayers must file tax returns within the specified time limit to claim damages. This loss can be in the form of capital, business, or professional gains. Income tax rules allow ITR filers in the relevant tax year to carry forward losses from capital gains.
- Documents are also required for visa processing
If you are going somewhere abroad, most countries require an ITR. This shows that the person is a tax-compliant citizen. This gives visa officers a clear idea of your current financial situation and income. This makes it easier for you to get a visa.
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