5 major benefits of filing ITR even if you income is not taxable.

Major 5 benefits of filing ITR even if you income which is  not taxable. 

Many of you earn but your annual earning is less than taxable limit, still it's beneficial to file Income Tax Return.

Income-tax return i very important document for the purpose of processing applications for various purposes and documentation. 

Benefits of Income Tax Return filling

Filing of tax returns(ITR) in India is compulsory for individuals if when their taxable income exceeds the limit of ₹250,000. Besides, individuals paying towards consumption of electricity more than ₹100,000 or those who have undertaken foreign travel for over ₹200,000 are also required to file a tax return.

But there are many other benefits of filing the ITR even if you earn below the tax payable limit. Here we are looking at some of them:

Now a days it's mandatory to have a PAN (Personal Account Number) to fill the income tax return. Even if you don't have the PAN you can get the PAN within five minutes. 

1. Claiming a tax refund. 

Passive income or investment income such as term deposit(FD) interest or dividend income suffers tax deduction at source. For many individuals these could be exempt if the total income is below the threshold. “The individual having only the intrest income, need to file the tax returns for claiming refund. Even in the cases of salaried taxpayers where excess taxes are deducted at source, filing of returns would be mandatory to claim the refund of excess taxes deducted. By filing an ITR, the refund of taxes can be claimed in the individuals bank account declared in ITR forms. 

2. Processing of Documents. 

Income-tax return is a very important document in  processing applications for various purposes. For example, at the time of processing of a house building or car loan, bankers want the copies of ITR filed to verify the individual’s sources of income. The ITR filed on prudent basis help in smooth processing. Besides securing a loan, the ITR helps in the smoth processing of obtaining credit cards and insurance policies. 

3. Application for VISA. 

Where individuals are planning to take up a job or conduct business visits to forgein countries, the immigration authorities request for copies of tax returns filed in the past years . The tax return filing ensures in smooth processing of VISA applications as immigration authorities then deem the individual as tax-compliant and his/her residents status are easily decided. It is seen that certain embassies that of the US, Canada, Japan the UK, etc. are particular about the tax return records of the individual applicants. 

4. Claiming losses. 

Filing of tax return within the due date is mandatory to claim specified incurred losses for an individual taxpayer, such as losses from capital gains, business, or profession, etc. “By opting to file ITR, not only does it benefit the individual taxpayers to claim the losses but also carried forward unadjusted loses for future years for set off. It also serves as a document to track losses that can be claimed in the future return. For example, an individual taxpayer who makes a profit from the sale of mutual funds or equity shares can adjust these profits with losses incurred in the previous years by filing ITR within due date”

5. Serves as Proof of Income

Self-employed or small businesses man taxpayers do not have any proof of income unlike salaried individuals who receive a salary certificate. Therefore, the ITR serves as a proof of income for these self-employed taxpayers with detailed break-down of income and expenses incurred by these individuals during that financial year. The self-employed taxpayers can furnish these documents before various forums as proof of income to get benifits are per rules

Linking of your PAN number with your aadhaar number it mandatory now, so should complete the same within the time frame. 

Also Read:

👉Steps involved in online corrections of PAN Data and fees needs to be paid. 

👉8 source of Income exempt from Income Tax