Benefits of filing income tax returns: Even if your annual income is less than 2.5 lakh, file ITR, it gives easy loan
Few days are left to file Income Tax Return (ITR) for the year 2021-2022. Many people believe that if their annual income is less than 2.5 lakhs and they do not come under the tax net, then they do not need to file ITR, but it is not so. Even if you do not come under the income tax net, you should still file returns, because if you file ITR, then it gives you many benefits. Filing ITR makes it easier to get a loan. Apart from this, it is also necessary for visa. Let’s know about the benefits of ITR.
Ease to get loans- ITR is a proof of your income. It is accepted by all banks and NBFCs as income proof. If you apply for a bank loan, many times banks ask for ITR. If you file ITR regularly, then you can easily get loan from bank. Apart from this, you can easily avail other services apart from loans from any financial situation.
Required to issue Visa- If you are going to another country, you may be asked for an income tax return while applying for Visa. Visa authorities of many countries ask for ITR of 3 to 5 years for Visa. Through ITR, they check that the financial status of the person who wants to come to their country.
To claim tax refund- If tax has been deducted from your income and deposited with the government, you cannot get it back without filing ITR, even if your income is within the basic exemption limit for income tax. If you want to claim tax refund, then it is necessary to file ITR for this, When you file ITR, the Income Tax Department does its assessment. If your refund is made, it is directly credited to bank account.
Also works as address proof- The ITR receipt is sent to your registered address, which can act as an address proof. Apart from this, it also acts as income proof for you.
It is easier to carry forward losses- If you invest in shares or mutual funds and you have a loss, and then it is necessary to file income tax return within the prescribed time limit to carry forward the loss to next year, because if you have a capital gain in the next year, then this loss will be like this. The profit will be adjusted and you can get the benefit of tax exemption on the profit.