|Individual taxpayers||Tax Exemption|
|Salaried individuals earning below 2.5 Lakhs per annum||Nil|
|Senior citizen (above 60 years of age)||Up to Rs. 3 Lakhs|
|Super Senior Citizens (above 80 years of age)||Up to Rs. 5 Lakhs|
Even though a person with an income below the 2.5 lac is exempted from the IT filing process, there are various benefits attached to filing the same. Here are the top 3 reasons:
Sometimes, your employer may be liable to deduct TDS before paying you for your service. TDS is basically a tax payment in advance that your employer has paid to the government in your favour. However, if you fall below the minimum income tax requirement, you can file your ITR and get a refund for the TDS paid on your behalf in the financial year.
According to Section 139(3) of the Income Tax Act, if you are incurring a loss in a particular year and wish for it to be offset against your income in the subsequent years, you can do so by filing your ITR.
In other words, even if you have earned under 2,50,000 in the financial year, it makes sense to file your returns as it can help to reduce the tax burden in the coming years. This is especially applicable in the case of large capital gains or losses.
If you are applying for a loan or even a visa, it is very useful to show your ITR's. Most lenders ask for three years ITR or more especially for secured loans such as Home Loans, Car Loans, etc.
Moreover, most countries require you to show proof of income before applying for their Visa. Thus, you must start filing your ITR even if your income is below the taxable limit.
Now that you are aware of why you need to file your returns; you should also know thata Nil Return can be e-filed just like a regular ITR.
You will need to enter the details of your income and any deductions if applicable; the Income Tax will be computed to show that you have no tax due. Thus, fill ITR to build your financial credibility and get back your refunds if any.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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