ITR filing deadline ends in just 3 days: Check 5 benefits of Filing ITR even if you are not in a taxable bracket

New Delhi: With only three days remaining for the deadline of filing of income tax return (ITR) for FY 2021-2022 (AY 2022-23) to get over, you must be in a hurry if you have not yet filed your ITR. Should that be the case, you must file your ITR before the last date i.e July 31.

There are several advantages of filing an ITR, even if your salary is less than 2.5 Lakh/3 Lakh/ 5 Lakh. 

Abhishek Soni, CEO& CO-Founder, Tax2Win, sharing his views with Reema Sharma of Zee Media said, "It is true that income tax return filing may appear like a time-consuming and difficult task, but the benefits far outweigh the inconveniences that taxpayers face."

"As per the Income Tax Act, 1961, individuals who earn income are required to pay an income tax on such income. Many people may be pondering whether or not they will gain anything by filing their ITR given that it is considered to be cumbersome," he added. 

Let’s understand 5 benefits of Filing ITR even if you are not in a taxable bracket

Getting Refunds

You must file Income Tax Returns in order to get your refund for TDS that was already deducted during the year; otherwise, you will lose it. Some taxpayers prefer investing a major part in fixed deposits. On such investments, tax can be deducted at the source (TDS) to the tune of 10% if PAN is provided and exceeding the threshold limit.

You can reduce your tax liability on income from savings instruments (tax savers) like term deposits if you file an ITR. Although these instruments are subject to taxation, the tax liability may be offset by ITR rebates.

To Avail Funding

Your ITR would be a crucial document to seek investment if you are starting a business and require money from investors. Lenders like to lend money to those who have filed their taxes and may use those returns as evidence of their income.

Curbing Black Money

If your income is unaccounted for, the income tax department may look into it since the issue of black money and money laundering is so pervasive. You provide a thorough accounting of your income when you file your income tax return. As a result, you won't have to worry about your money being referred to as "black money" and may utilise it freely.

Applying for Visa

The risk that a visa application would be refused or flagged as problematic is decreased if ITR documentation is included with the application. The tax return reflects the person's civic responsibility. Several countries now demand ITR for visas owing to rising security concerns. For instance, you must submit the returns from the past three years when applying for a Schengen Visa, even if you had no income during that time.

Carry Forward of Losses

The Income Tax Act of 1961 allows you to carry over a loss from a business or other type of loss to a subsequent financial year.

ITR filing is a significant legal requirement placed on taxpayers. Taxpayers are expected to report their earnings and assets on the ITR and pay any owed taxes by the deadlines.

While filing an ITR has several financial and non-financial advantages, such as making loans simpler to get, avoiding interest and penalties, claiming tax refunds, and hassle-free visa processing, it is also every taxpayer's social responsibility to do so.