Income Tax Return Filing : The last date for filing Income Tax Return (ITR) for the assessment year 2021-22 is 31 December 2021.
For individual taxpayers whose taxable income is more than Rs 2.50 lakh per annum, it is necessary to file ITR. At the same time, if the taxable income is less than the exemption limit, then it is not mandatory to file ITR.
Despite this, if you file income tax return, then you get many benefits from it. However, do know that if your electricity bill consumption is more than Rs 1 lakh every year or you have spent more than Rs 2 lakh on foreign travel, then you have to file ITR.
ITR: Will act as income proof
People who have their own business, they do not have any proof of income like salary people. For such people, ITR acts as income proof along with details of income and expenses. Those who have their own business can present ITR as their income proof document. Salaried class people get the benefit of Form 16 from the company, which is their income proof.
Easy to claim refund
If you want to claim any kind of tax refund, then you have to file ITR. Many times the income slab is not in the purview of tax, yet TDS is deducted. In such a situation, if you want to refund the deducted money of TDS, then it is necessary for you to file a return for that. After filing ITR, if your refund is being made, then the Income Tax Department transfers it to your bank account.
Works like documents
ITR is a document that serves as a proof in various financial applications. For example, while applying for a loan, bankers ask for a copy of the tax return to verify your income source. Apart from getting the loan, ITR also helps in the process of getting a credit card, insurance policy. In this way it works as a proof of your income.
ITR for claiming loss
Filing ITR within the due date is essential for an individual taxpayer to claim loss (loss of capital gains, loss of business or profession, etc.). Income tax rules allow carry-forward loss against capital gains only to those who file ITR in the relevant assessment year. If you have earned profit from the sale of Mutual Funds or Equity Shares, then you can adjust these profits with the earlier losses by filing returns on time.
When applying for VISA
You need a visa (VISA) to go out of the country for job or business purposes. Documents related to ITR are asked while applying for visa. Often embassies of many countries look at the tax return records of those applying for visas.
Through ITR, it is seen that what is the financial status of the person who is coming to their country. Also, what is the tax compliance record of that person in his country.
