ITR Filling 2024: The income tax return (ITR) must be filed by July 31st for the year 2023-24. There is a misconception that if an individual with an annual income below Rs. 2.5 lakhs, do not need to file ITR as they don’t come under the tax basket.
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but the same is not true. Even if a person does not come under the income tax net, he/she should still file the return, because filling an ITR brings you a lot of benefits. Filing an ITR makes it easier to get a loan. It can also help in getting a Visa. Below is the list of things where an ITR can play a crucial role.
– Ease in acquiring loans
ITR is proof of your income. All banks and NBFCs accept it as proof of income so if you apply for a bank loan, banks frequently request for ITR and if you file ITR regularly, then you can easily get a loan from the bank. With the help of ITR, you can easily get a loan and other services from any financial institution.
– A necessity for visas
If you are planning to travel abroad, you might be asked for income tax returns when applying for a visa. Visa authorities of various countries request ITRs for 3 to 5 years for a visa.
Through ITR, they examine the financial status of the person.
– To claim a tax refund
Even if your income does not come under the income tax ambit, if tax has been deducted from your income and deposited with the government, you cannot get it back without filing an ITR. You must file an ITR if you wish to claim a tax refund. When you file ITR, the Income Tax Department assesses it. If a refund is due to you, it is directly credited to your bank account.
– ITR receipts also serve as proof of address
Your ITR receipt is sent to your registered address, which can be used as proof of address. In addition, it also serves as proof of income for you.
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– Makes it simpler to carry losses forward
If you invest in stocks or mutual funds and suffer a loss, you must file income tax returns within the specified time limit to carry the loss forward to the following year, because if you make a capital gain in the next year, then this loss will be carried forward to the next year. It will be adjusted from profit and you can get the benefit of tax exemption on profit.
