5 Benefits of Filing ITR: If you’re an Indian citizen and your gross total income surpasses the tax exemption limit, then you must file your tax returns (ITR). If your gross total income doesn’t exceed the tax exemption limit, then you don’t need to file your ITR. an individual whose gross income is up to Rs 250,000 per annum isn’t required to file ITR. You are also required to file your ITR if your electricity consumption bill exceeds Rs 1 lakh in a year otherwise you have undertaken foreign travel for over Rs 2 lakh
5 benefits of filing ITR even if your income is not taxable – Taxkundali
However, there are many other benefits following filing the income tax return even if you earn below the taxable limit:
Income Tax Return (ITR) for Claiming Losses – Filing of income tax return within the due date is necessary to claim specified losses for a particular taxpayer. These losses are often in the form of capital gains, business, or profession. If you’ve taken advantage of the sale of mutual funds or equity shares, you can arrange these profits with losses incurred within the past by filing tax returns on time.
Claiming a Tax Refund – You can save on your taxes on the income from savings implements like term deposits if you file an ITR. you’ll also save tax loss on your dividend earnings by filing ITR. While these implements are responsible for taxes, you’ll claim the tax loss through ITR refunds. Even if your total gross income from various sources is above Rs 250,000 and you’ve made investments in a practice that your net is below Rs 250,000 during a year, you’ll get the benefit of tax refunds and obtain the money-back that is deducted at the source. Therefore, you must file your ITR. But, those investment instruments should be exempted under some terms of the IT Act.
Income Tax Return as Proof of Income – Salaried class has the advantage of Form 16 which is issued by their employer and it acts as income proof for the individual. However, for the people that are self-employed, the ITR filing document is authentic income proof. It gives an in-depth breakdown of income and expenses incurred by these individuals during any financial year.
Income Tax Return for Application for VISA – Where individuals are thinking to take up employment or conduct business appointments outside India, the immigration authorizations request copies of tax returns filed in the past. The income tax return filing guarantees in smooth processing of VISA applications as immigration authorities then consider the individual as tax-compliant. It’s seen that several embassies of the US, Canada, the UK, etc. are particular about the income tax return reports of the individual.
Processing of Loan/Documents – Income-tax return is an essential document for the purpose of processing applications for several purposes. For example, at the time of residence an application for processing of a house or automobile loan, banks seek copies of tax returns filed to check the individual’s sources of income. If you have an ITR filing document, your chances for a speedy loan increase manifold. If you’re planning to buy a car, house or trying to find a personal loan, ITR is going to be a really helpful document for you. ITR is additionally helpful in getting credit cards, policies, etc. it’s very useful in cases where a self-employed person is seeking a loan.