Income Tax Return Filing Experts tell that there are many benefits of filing Income Tax Return even if your income is not taxable. By doing this you can also avoid many problems in future.
The last date for filing ITR for assessment year 2022-23 is July 31, 2022. According to the Income Tax Rules, it is mandatory for a person in India to file a tax return only if his taxable income exceeds Rs 500,000. People who have low income think that filing ITR is not necessary for them at all. But do you know that there are many benefits of filing ITR even if the annual income is less. You should file ITR even if you earn less than the taxable limit. In this regard, we talked to Rajendra Gupta, a chartered accountant associated with Ghaziabad-based firm Sanjeev Arora & Associates, and tried to know the details from him. So you also know, what is the opinion of the experts-
Ease of getting loan
If a person files ITR regularly then it is very easy for him to get the loan. Even if your income is not taxable, you keep filing income tax returns every year, then your financial credit is good in the eyes of the bank and banks do not refuse to give you a loan.
Get visa easily
If you are planning to travel abroad or want to go abroad for a job, then you may be asked for the information about the income tax return filed in the past. By having a record of tax return filing, visa officers consider you to be a responsible and abiding citizen.
If starting a business
If you want to start your business then filing ITR is very important. This will make it easier for you to arrange money to further your business.
Damage compensation
If you have incurred loss in business, you can mention the same while filing ITR. Not only does this help with compensation, but it also serves as a document to track your loss. For example, if you have incurred a loss in business for one year, mention it while filing ITR. If there is profit in the next year, you can setup this loss through it. Similarly, if a taxpayer who earns profit from the sale of mutual funds or equity shares, he can adjust it against the loss incurred in the past.
There will be no problem in getting refund
If TDS has been deducted from any transaction by any company and you do not file ITR, then you will not get its refund. Filing ITR will give you a refund for the same. Apart from this, your income may not be taxable, but the income you show in ITR becomes your legal income. This allows you to use ITR filing documents in future if you need a net-worth certificate, as it is increasing your capital.
