TIMES OF UP

3 benefits of income tax return (ITR) filing even if you earn below ₹2.5 lakh

ITR filing: There is no record as authentic as income tax return of your income. (MINT)

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ITR filing: The due date for income tax return (ITR) filing for FY 2021-22 is 31st July 2022. While it is advisable to file ITR on or before 31st July 2022 if one’s annual income is above 2.5 lakh, it is also advisable for those whose annual income is below 2.5 lakh under certain circumstances. If an earning individual has incurred losses from the stock market, mutual funds, properties, etc. then in that case ITR filing will enable the earning individual to set off losses via income from other sources. Similarly, if the earning individual has went through TDS from its recruiter or from any other payer, then in that case too, ITR filing is must claim ITR refund.

Speaking on the cases when ITR filing is must even when one’s annual income is below 2.50 lakh, Vinit Khandare, CEO & Founder at MyFundBazaar said, “Having paid an electricity bill of a lac or more, incurring foreign travel expenditures to be 2 lakhs or more or multiple bank deposits of over a crore scenarios make filing an ITR for any taxpayer imperative. Essential for setting off losses incurred via other sources of income, a nil return must be filed to claim a refund on tax deductions, and to carry forward heavy losses – being business/capital in nature, incurred on the sale of shares, mutual funds, property, etc. redeeming overall tax liability.”

Echoing witih Vinit Khandare’s views, Abhijit Shukla, CEO and Director at Tarality said, “While it isn’t mandatory to file a nil ITR, doing so voluntarily has various benefits – be it applying for a loan, insurance cover or even a visa – with ease. However, in certain scenarios, filing a return is imperative, although the taxpayer’s overall income may be below the actual exemption level. For instance, if a common resident taxpayer has foreign assets or income, filing a tax return disclosing overall assets and income becomes inevitable for him.”

On major benefits that an earning individual would get after ITR filing even when one’s annual income is below the threshold limit of 2.5 lakh, Sujit Bangar, Founder at Taxbuddy.com listed out the following 3 benefits:

1] An authenticated income record: There is no record as authentic as income tax return of your income. Through ITR acknowledgment, the Government of India (GoI) certifies that you have earned this much of income in the concerned financial year. This income proof document can be used on numerous occasions as may be needed.

2] Ease in Visa approval: In case you want to travel overseas, you may need a visa and the visa-issuing authorities ask for proof of income of the last few years to issue a visa and in such cases, the income tax return filed is the most authentic proof. So, if an earning individual is planning to move abroad in near future, then he or she is advised to file one’s ITR even when its annual income is below 2.50 lakh.

3] Applying for loan: In case you intend to apply for any loan, the lending bank or institution asks for income tax return and ITR submission gives much-needed confidence to the lender to sanction your loan. So, an earning individual mulling to apply for loan is also advised to apply ITR by given due date and remain assured about the smooth approval of its loan application.

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TIMESOFUP

TIMESOFUP