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Many people believe that if their income is below the tax slab then it is not necessary to file ITR. But this thinking can deprive you of many big benefits – from refunds to loans and visas. ITR is not just a document for filing taxes, but also an important means of strengthening your financial identity.
New Delhi. There are a large number of people in the country whose income is less than the taxable limit and they assume that ITR is not necessary for them. But this belief can prove to be financially harmful for you. Income tax return is not only a record of your income, but it also strengthens your financial profile. Banks, financial institutions and embassies of foreign countries consider ITR as a reliable document. In such a situation, even if you are not taxed, filing ITR is beneficial for you in many ways.
TDS refund and future tax saving opportunity
Even if your income is within the tax free limit, TDS can still be deducted on salary, FD, or other sources. If you do not file ITR, then even though this money is yours, you do not get it back and it remains with the government. By filing ITR you can get full refund without any hassle. Apart from this, if you have suffered any loss in stock market, property or business, then by filing ITR you can carry forward these losses in future years. This set-off will reduce your tax when there is profit in the coming years. This big benefit is lost if ITR is not filed.
Ease of loan approval and better interest rates
While taking home loan, car loan or personal loan, banks first ask for income proof, in which ITR is considered the most important document. If there is no ITR, there is a risk of the loan being rejected or the bank may charge higher interest rates. On the other hand, people who file regular ITR are considered more trustworthy, due to which the loan is easily approved and the interest rate is also better. This strengthens your credit profile and makes any future financial planning easier.
Gives big benefits in foreign travel and visa process
If you apply for a visa for America, Canada, UK, Australia or other countries, embassies often ask for a copy of ITR. This is proof of your financial stability and shows that you are financially responsible. In the absence of ITR, you may have to provide additional documents, which may make the visa process slow or complicated. Having ITR increases the chances of visa approval and the entire process becomes easier. This is why experts recommend filing ITR every year, whether you have to pay tax or not.
