Income Tax Return : Even if your income does not fall under the tax limit, there are many benefits of filing ITR. It is not just a means of paying tax, but an important financial document, which proves helpful in loans, investments, visas and many other matters.
Taxpayers have to file income tax returns by July 31. Most people feel that they do not have enough income to file a return. But here let us tell you that even if your income is less than the limit prescribed by the income tax, you should still file a return. Even if the income is less than this limit, filing ITR can still prove to be beneficial. Experts also believe that every person should file ITR because it has many benefits. Let’s know why.
1. To get tax refund
If TDS (Tax Deducted at Source) has already been deducted from your income, then you can get this money back by filing ITR. This TDS can be deducted on your salary, commission, interest or fees. Many times more TDS is deducted on a person’s income than required. The only way to get it back is to file ITR. If you do not do this, then your money will remain stuck with the government.
2. To adjust future losses
If you have suffered any financial loss (such as loss in stock market, business or property) in a financial year, then it can be adjusted with the profit of the next year. But for this it is necessary that you file ITR. If you do not file the return for the year of loss, then you will not be able to adjust this loss with the profit in future. In particular, ITR is necessary to carry forward the loss related to house property and capital assets.
3. Ease in taking loan
If you want to take a loan (like home loan, car loan or personal loan) from a bank or NBFC, then ITR acts as a strong income proof. Banks and financial institutions accept the loan application only when you provide proof of your income. You can get a loan even if you do not have ITR, but then the interest rate may be high. Therefore, if you are planning to take a loan in the future, then filing ITR will be beneficial.
4. For foreign travel and visa application
If you are planning to travel abroad, visa authorities of many countries may ask you for income proof. Especially, if you are applying for a visa to countries like the US, Canada, Europe or Australia, it may be necessary to submit ITR of the past few years. This document can make the visa process faster and easier, as it shows your financial stability.
5. To increase reliability in financial transactions
If you are planning a big financial deal, buying property or starting a business, ITR helps you show your financial position as strong. This improves your credit history and makes your transactions with banks and other financial institutions easier.
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