Only a few months are left to file income tax returns. Taxpayers can file their returns until July 31, 2025. Even if your income is below the taxable limit, you can still benefit from filing your income tax returns.
Filing income tax returns is not just about paying taxes; it is also an important financial document. You can use it for things like applying for loans, making investments, or getting a visa. Many people avoid filing income tax returns because their salary doesn’t fall under the taxable limit. However, this is a mistake. Even if you don’t fall under the income tax limit, you can still file your ITR and enjoy several benefits.
Benefits of Filing Income Tax Returns
1. Get Your TDS Money Back
TDS (Tax Deducted at Source) is deducted from many people’s income, such as salary, commission, interest, or fees. By filing your ITR, you can get back the TDS that has been deducted. If you don’t file your income tax return, the TDS money gets stuck with the government. Therefore, it is crucial to file your ITR.
2. Reduces Financial Loss
Filing income tax returns can help reduce your financial loss. If you’ve suffered a loss in areas like the stock market, business, or property, you can file your ITR to offset that loss against future profits. However, you must file the return in the year of loss to carry it forward for adjustments in the next year. If you’ve faced losses in property or capital assets, be sure to file your ITR.
3. Makes Foreign Travel Easier
If you plan to travel abroad, especially to countries like the USA, Canada, Australia, or European countries, you may need to provide income proof for your visa application. Filing your ITR helps in showing this proof and increases your chances of getting a visa.
4. Easier Access to Loans
When applying for a loan from a bank or financial institution, you may be required to provide income proof. Your ITR can serve as this proof. Having your ITR filed makes the bank more confident in your loan repayment capacity, which increases your chances of securing the loan.