Top 5 Reasons to File Your ITR Even If Your Income Is Not Taxable
Filing ITR in India is compulsory for all those individuals who earn a yearly income of INR 250,000 and above. Apart from that, the individuals must also file Income Tax returns if they get an electricity bill of more than INR 1 lakh in a year. Even those individuals who spend more than INR 2 lakh on foreign travel in a year will have to file ITR.
Many individuals choose the option of Income Tax Return (ITR) even if they are not liable to file. Even if your income is not taxable, it is still beneficial to go for ITR filing.
In this blog, we will discuss the benefits of Income Tax Return Filing for individuals whose income is not taxable.
Reasons to file ITR Even If Income is Not Taxable
Many young entrepreneurs today choose the option of filing a GST return even if their income is not taxable. There are many reasons why you must choose income tax returm filing such as:
Income Tax Refund
Several incomes earned in India claim for TDS. These incomes include bank term deposits, dividend income, and so on. You can save tax on these incomes by filing ITR every year. Government withholds these incomes and you can claim a refund by filing ITR every year.
The government might withhold excess TDS if you do not disclose your deductions and investments. So, the best way to get an income tax refund is to file an income tax return every year.
Acts as Proof of Income
All the salaried people in India must file Form 16. Filling out this form has several benefits for salaried people. It is proof of income for individuals. ITR shows the total income and expenses incurred by salaried people during the year.
In the absence of any proof, you can use ITR as proof of income. It can be also used to claim an income tax refund.
Helps to Get a Visa Quickly
One might want to travel abroad for many reasons such as a business, trip or any other reason. Choosing the option of NIL GST Return will help you to get the visa within a few weeks. While applying for a visa, you need to submit ITR copies along with other documents and papers.
When you file an income tax return, it is proof that you comply with all the tax rules, laws, and regulations. Apart from that, income tax returns also show the financial stability of taxpayers. ITR shows that a person is financially stable and it also helps to get a visa quickly for international tours. You can enjoy many foreign tours every year by filing income tax returns. Moreover, you can travel abroad to expand and grow your business operations.
Helps to Claim an Income Tax Loss
Loss can incur at any time in a profession or business. GST Return Filing in India helps to set off loss against profits earned in any year. Losses incurred in a profession or business under the head of Capital Gains can be adjusted against profits of the future year by filing returns every year.
If you earn profit in any particular year in a business, it is necessary to file an income tax return. ITR will help you to adjust losses against profits for the future year.
Helps to Get a Loan Easily
Individuals need a loan for various tasks such as marriage, home, education, foreign tour, and so on. Filing NIL Return will help you to get any type of loan quickly. Whenever you apply for any loan in a bank or financial institution in India, income tax returns for the last 3 years have to be submitted with the loan application form and other documents and ID proofs.
Submitting income tax returns will help in processing loans faster than before. You will get an education loan or home loan immediately after filing income tax returns.
Additionally, new businessmen can get a business loan to expand their business activities by submitting income tax returns. You can also get various other credit forms easily by submitting income tax returns.
How to file a GST return in India?
GST was introduced in the year 2017 with the object to bring a uniform taxation system to the country. Filing NIL ITR has many benefits to the taxpayers such as quick loans and set-off of losses against profits. It is very easy to file GST returns in India by following a short procedure such:
- You have to first do online GST Registration in India to get a GST number of 15 digits. This 15-digit GST number is necessary for registration.
- The next step is to visit the GST portal to register for GST.
- Now, you have to click on the option “Services”.
- The next thing you must do is to click on the option "returns dashboard". You have to fill in the financial year for which you are paying returns.
- The next step is to choose the return that you have to file and tap on "prepare online". You have to enter all the details such as value, late fee, and amount.
- Now, you have to tap on the "Save" option after which you will get a message on the screen.
- The next step is to tap on the option “Submit” to file the returns.
- Now, you have to click on the option “payment of tax” to pay returns.
- Finally, you have to check the box and choose an authorized signatory from the list. You have to make the payment for the current financial year.
We discussed how filing income tax returns are beneficial for individuals who are not liable to file returns. Choosing the option of Income tax return for individual and Income tax return for businesses is helpful for young entrepreneurs who to borrow loans for growing business activities. Besides, filing income tax returns also helps to claim an income tax refund.
Filing ITR will also help to set off losses against profits in future years. It helps individuals to get the visa quickly within some weeks for foreign travel.
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