Income Tax Return Update: You are still required to file an ITR even if your earnings are below the Tax Exemption Limit. Although you are not required by law to file an ITR, doing so prevents you from receiving several advantages. Therefore, tax professionals encourage everyone to file an ITR.
Income Tax Return: It is not required by law for you to file an ITR if your income is not subject to income tax. But if you do, you will lose out on a lot of advantages. Everyone is aware that the tax exemption threshold for seniors over 60 but under 80 is Rs. 3 lakh, while the threshold for super seniors, or those over 80, is Rs. 5 lakh. However, you should still submit an income tax return even if your salary is below the income tax threshold because doing so has many benefits.
advantages of filing an ITR
1. Loan eligibility is decided
Your eligibility for a loan will be determined by the bank depending on your income if you apply. The amount of the loan the bank will grant you is based on the income you reported on your income tax return. ITR is a document that all banks utilize for quick loan processing.
Usually, banks request three ITRs from borrowers while processing loans. Because it makes it easier to acquire a loan, you must file an ITR if you wish to buy a house with a home loan, buy a car, or take out a personal loan.
2. Required for a Tax Refund.
If you submit an ITR, you can avoid paying tax on interest from savings plans such as term deposits. On dividend income, tax can be avoided as well. If the combined income from all sources of income exceeds Rs 2.5 lakh, you can claim tax through an ITR refund and reclaim any TDS that was previously deducted.
3. A valid address and income document
An Income Tax Assessment Order is acceptable for address verification. It can be used to create Aadhar cards as well. The corporation gives Form-16 to the employees. It is his evidence of income. The ITR filing form serves as legitimate income evidence for self-employed people and independent contractors as well.
4. Can claim the loss
Taxpayer must file their income tax return on the due date in order to claim any losses. This loss could manifest as a decline in the company, industry, or capital gains. Income tax regulations state that if an ITR is submitted in the relevant assessment year, a loss may be carried forward and used for capital gains.
5. Additional paperwork needed for visa processing
Most countries require ITR if you are traveling overseas. This proves that the person is a law-abiding citizen. This provides the visa processing staff with a thorough understanding of your present financial condition and source of income. This makes it simpler for you to get a visa.
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