Why should file ITR? Who has to file ITR?- Benefits

ITR is a form that an individual has to submit to the Income Tax Department of India. The tax collected by the Central Government and the State Government on your income is called ITR. Those who come under the purview of filing income tax returns are required to file ITR once a year.

In this article, we will know what is ITR. Who should file ITR? Why should file ITR? What are the benefits of filing ITR? we are going to tell about all these things in detail.

Many people are unaware of the benefits of filing ITR, Why should file ITR?. so today we are telling you about the benefits of filing ITR.

What is ITR (Income Tax Return)? How to File ITR? Meaning & Full Form

Who has to file ITR?

  • Under Section 139(1) of the Income Tax Act 1961, if your annual income is more than 2.5 lakhs, it is mandatory for you to file Income Tax Return (ITR).
  • All the companies that are working in India, whether it is government or private, they also have to pay income tax. How much income tax they will have to pay depends on their annual profit.
  • If your total income in any one financial year is only from agriculture and allied work, then you do not need to file ITR.
  • ITR will have to be filed even if the person has taken any type of loan or has applied for a visa.
  • Even if a person earns from any research institute, school, medical center, or non-government university, then he will have to file ITR.
  • Those whose age is between 60 years to 80 years and if their annual income is more than ₹ 30000, still have to pay income tax.
  • People whose age is more than 80 years and their annual income is more than 5 lakhs, also have to file income tax.
  • If a person is a resident of India and he does any business abroad, he will still have to pay income tax.
  • If an NRI is there but his income comes from India, he will still have to file ITR.

GST Full Form – What is GST?, Types of GST, History

Benefits of filing ITR

insurance cover

If you want to take insurance coverage above one crore, then insurance companies can ask you for ITR. Insurance companies ask you for ITR so that they can know what is your source of income and how much.

 address proof

 Income tax return receipt is sent to your registered address which can act as address proof for you.

ITR is required for visa

If you are going to any other country outside India, you need a visa. When you apply for a visa, you may be asked for an income tax return. Let us tell you that the visa authorities of many countries consider ITR for visas for 3 to 5 years. Through ITR, they want to check that what is the financial status of the person who wants to come to their country.

ITR has to be filled if you want a tax refund

Many times a person does not come under the purview of salaried income slab tax, yet his TDS is deducted due for some reason. In such a situation, if you want a refund, then it is necessary to file ITR because to claim a tax refund, you have to file ITR.

for loan

If you need a loan and you want to get the loan easily, then you need to file ITR on time. Income tax return is a form of your income. Which all government and private organizations accept as income proof. If you file an income tax return regularly, then you can easily get a loan from any bank.

ITR is necessary to start a business

If you want to start a business then you need to file ITR because it is essential to file Income Tax returns even to start a business. If you want to get a contract from any department, then ITR can be of great help to you in getting the contract. If you want to take a contract in any government department, then you must have ITR for the last 5 years.

high money transactions

If you do any transaction for more money then ITR can prove to be helpful for you. Because when you keep filing ITR from time to time, then you are not at risk of getting notice from the Income Tax Department on big transactions.

To carry forward losses in shares

ITR is a good resource for those investing in mutual funds or stocks. In case of loss, it is necessary to file an income tax return within the stipulated time frame to carry forward the loss to the next year. In case of capital gain in the next year, the loss will be adjusted against profit. Due to this, you get the benefit of tax exemption. (Why should file ITR?)

What is ITR (Income Tax Return)? How to File ITR? Meaning & Full Form

Why should file ITR?

Many people think (Why should file ITR?) that if TDS is deducted from salary or interest, then they do not need to file returns. Both are different things that have to be taken care of. Even if TDS has been deducted, the return is required to be filed. Apart from this, if you have income, then it is necessary to file a return.

If you have invested more than 1 crore in your current bank account then it is necessary to file ITR. If you have spent more than 2 lakhs on foreign travel, then it is necessary to file ITR. If you have spent more than 2 lakhs on a foreign tour for any other family member, then it is necessary to file his ITR.

If you do not fall in the taxable category and your TDS is deducted, then you must file ITR. By doing so, you will get a refund from the government. If you do not file the return then you will not get the refund. (Why should file ITR?)

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