Banks decide the loan amount to be given to you on the basis of your annual income filed in Income Tax Return (ITR Filing). Apart from this, your ITR can also save many types of tax (Tax Exemption).
New Delhi. According to the Income Tax Act, if the annual income of a person exceeds the exemption limit, then it is mandatory for him to file Income Tax Return (ITR Filing). At the same time, it is not mandatory to file ITR if the income is within the exemption limit, but if you fill it as a formality then you can get many benefits. The last date for filing income tax returns for the financial year 2020-21 is 30 September 2021. Let us know what benefits you can get if you file ITR before the stipulated period.
For whom is the income tax exemption limit, how much
a person up to 60 years earning Rs 2.5 lakh annually gets exemption from income tax. At the same time, the tax exemption limit for senior citizens who are more than 60 years or less than 80 years is Rs 3 lakh. Apart from this, for senior citizens above 80 years, this limit is Rs 5 lakh. It is better to file income tax return even after being out of the tax net for taking bank loan, credit card application or visa.
>> All banks decide the loan amount to be given to you on the basis of your annual income filed in the Income Tax Return. All banks use ITR for easy processing of loans. In such a situation, if you want to take a home, auto or personal loan, then banks ask you for at least the last 2 years ITR. Many banks also ask for ITR for 3 years. Therefore, filing ITR can prove to be a profitable deal.
>> Filing ITR can save tax on dividend income as well as interest earned on savings schemes like term deposits. You can claim tax through ITR refund. Apart from this, if the total income from multiple sources of income exceeds Rs 2.5 lakh, then deducted TDS can be claimed.
>> Income Tax Assessment Order can be used as a valid address proof. It can also be used to make Aadhar card. Form-16 is issued to the employees by the company, which is income proof. This document also acts as a valid income proof for self-employed or free-lancer.
>> It is necessary for the taxpayer to file income tax return within the due date to claim any loss. This loss can be in the form of capital gains, business or profession.
>> If you are going abroad then most of the countries demand ITR. This shows that the person is a tax compliant citizen. This gives the visa processing officers a clear idea of your financial situation and income. This makes getting a visa very easy.
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