There are numerous advantages to filing an income tax return even if your income doesn’t fall in the taxable category.
The deadline for filing Income Tax Returns (ITRs) for the fiscal year 2022-23 is July 31, 2023. Many individuals have already begun the process of filing their ITRs. Typically, individuals who have taxable income are responsible for paying income tax. However, those with non-taxable income often question the need to submit ITRs since they are exempted from paying income tax by the government.
Read More: ITR Filing: Save Tax On Arrear Amount, Here’s How To Get Relief Under Section 89(1)
Even if your income is not taxable, you must file an income tax return. There are numerous advantages to filing an income tax return and today we will tell you the same.
Most Reliable Proof of Income
Filing an Income Tax Return (ITR) provides you with a valuable certificate that serves as the most credible official documentation of your annual income. This certificate holds significant advantages, making it easier to obtain credit cards, loans, and other financial products. It also helps establish your credit history. Additionally, if tax is deducted at source (TDS) by someone not liable for income tax, filing a return allows for claiming a tax refund.
Read More: Filing ITR AY 2023-24? Check Difference Between Exemption, Deductions, Rebate
Aid in Establishing a New Business
Filing your income tax return proves beneficial even if you plan to start a new business. It can assist you in acquiring contracts from government departments. Furthermore, if you file your return manually, the receipt serves as proof of address, thus acting as a valid address document in various situations.
Facilitates Visa Acquisition
When applying for a visa to travel abroad, income tax returns are often required. Visa authorities may request ITRs spanning three to five years. These documents allow the authorities of the country you intend to visit to evaluate your financial situation.
Read More: Income Tax Return Filing: Latest updates on ITR forms for the current financial year
Assistance in Offsetting Stock Market Losses
ITR can also be of assistance if you have investments in the stock market or mutual funds. Any losses incurred from these investments can be carried forward to subsequent years. However, filing your ITR before the income tax deadline is crucial to benefit from tax exemptions by adjusting the loss against capital gains in the following year.
