Today is 161st Income Tax Day. It is seen many times that people hesitate to file Income Tax Return (ITR). They think that if we do not come under the income tax net, then they do not need to file ITR. However, it is not like that. Everyone should file ITR. Today, on the occasion of Income Tax Day, we are telling you about the benefits of filing ITR and the special things related to it.
Taxpayers get two options to file income tax returns. The new option was given on April 1, 2020. In the new tax slab, the tax rates on income above Rs 5 lakh were kept low, but the deduction was taken away. On the other hand, if you choose the old tax slab, then you can take advantage of various tax deductions.
The number of people filing income tax returns in the country is increasing. Talking about the last 5 years, during this period the number of ITR filers has increased by about 32%. In 2016-17, 5.61 crores ITRs were filed while in 2020-21 7.38 crore were filed.
Filing of Income Tax Return (ITR) is mandatory for those people whose gross income is more than the limit fixed by the Income Tax Department. For those whose income is less than the prescribed limit, it is not necessary to file ITR. At present, ITR is required to be filed for those whose gross total income is Rs 2.5 lakh per annum. According to experts, filing ITR even on income less than Rs 2.5 lakh does not cause any loss but has many advantages.
If your income is not taxable and ITR is filed, it will become proof of your income. This makes it easy to take a loan from the bank. Many banks also ask for proof of return for two years for the vehicle or home loans. In such a situation, filing returns is beneficial.
Sometimes tax at the source is deducted even if your income is not taxable. For example, if your total income is less than 2.5 lakhs but the income of Rs 1 lakh is being made on FD in the bank, then 10% tax should be deducted by the bank. In such a situation, your tax deducted by filing ITR gets refunded.
Proof of ITR in the application for a visa reduces the chances of the application being rejected. It gives proof that one is a responsible citizen. Apart from this, many countries also demand ITR for visas.
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