Why you should File Income Tax Return (ITR) where Income is below than the exemption limit: –
Income Tax Return (ITR), I am pretty sure that you all are very much familiar with this term. We have seen this word many times either in newspapers, Social Media, or any other platforms.
So, below I elaborated why it is important to file the ITR, especially in a case where the income of the assessee is below the exemption limit defined by the Government of India. ITR is a Form in which the assessee files information about his/her total income earned, the deduction claimed and taxes paid during the year.
If your income is more than the exemption limit defined by the Government of India, which is 2.5 lakh for ordinary individuals, 3 lakhs for senior citizen,s and 5 lakhs for super senior citizen, you must have to file the ITR. Although, if your income is below the exemption limit, in that case also, it is always advisable to file the Income Tax Return to get below benefits.
Following are the list of benefits of filling the Income Tax Return: –
1. Hassle-Free Bank Loans: – ITR is considered the most authentic document of an Individual’s income. Whenever you apply for a loan, most of the banks and NBFC ask for ITR as the receipt of Income. In that situation, ITR receipt helps us in the hassle-free processing of Bank loans. Thus, filing of ITR always helpful for lenders in availing Bank Loans.
2. Quick Visa Processing: – Whenever you apply for a visa from developed countries, they ask for ITR receipts, to ensure your capability to maintain that country’s cost of the trip. They are always very much particular about tax compliances in your residence country before visa approval.
3. Income and Address proof: – In many cases, Income Tax Return can be used as proof of Income and Address of the assessee.
4. Avail Deduction: – Tax return is mandatory to avail all deduction in respect of Investment eg. 80C and exemption in respect of Long-Term Capital Gains.
5. To compensate Losses in the next financial year: – To carry forward losses in the next financial year, it is always necessary to file the Income Tax Return. Without filing ITR, unadjusted losses cannot be carried forward to future years.
6. Credit Card processing: – Bank always asks for an ITR receipt from an individual to give him a credit card. Without an ITR, Bank can reject the credit card application of an assessee.
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If these ” benefits ” do not apply in your case, then there is no point in filing the returns if yout income is below taxable income. There was an amendment in 2018 tax laws which clearly states it.
What is use for a senior citizen 65 yrs whose income is below taxable limit to file ITR ,as it is he or she is not eligible for any loan.
how can one file a ITR in absence of form 16 ,there is a any scope to prepare a form 16?
If there was very much below taxable total income,then non filling of ITR is not leading to penalty is assessee files ITR’S in previous years. Kindly clarify me as per knowledge.