Income Tax Return: Should You File Nil ITR Even If Earning Less Than Rs 2.5 Lakh?

According to tax and investment experts, one cannot claim ITR refund If he has not filed Income Tax Return on TDS deduction. Therefore, those who have TDS deduction are required to file income tax return even if their annual income is less than the income tax threshold limit. 2.5 lakh per annum.

On why it is prudent to file ITR even when your annual income is less than the threshold, Aarti Rawate, Partner, Deloitte India said, income tax return Even when the income for certain tax years is below the minimum income threshold, which makes it mandatory to file tax returns to ensure that there are no discrepancies in the tax filing records. Many times when one applies for passport renewal or certain visas, the tax acknowledgment of previous years is required. Also, many times automated notices are sent by the tax department asking why the tax return has not been filed. So by filing the return these will be deferred.”

Nil ITR. benefits of

On the benefits of filing ITR even if one’s annual income is low Sujit Bangar, founder, TaxBuddy.com, said about Rs 2.5 lakh, “One cannot claim ITR refund against TDS deducted by his employer or any other payer. So, if your income is less than the basic exemption limit If so, it is also beneficial. File income tax return in certain situations.”

The TaxBuddy.com founder further added that if you want to apply for a loan, be it a housing loan or consumer loan or personal loan, the lending bank or institution asks for an IT return and you will be much more likely to submit an IT return. get something. You need confidence in the lender to approve the loan.

When should you file nil ITR

Sujit Bangar of Taxbuddy.com listed the following cases when one should file ITR even when one’s annual income is less 2.50 Lakh:

1]If ‘Total Taxable Income’ is less than the basic exemption limit and ‘Gross Total Income’ is more than the basic exemption limit, then ITR needs to be filed.

2]If TDS has already been made, ITR has to be filed to get the refund;

3]ITR is required to apply for loan, visa etc.;

4]If one spends total For electricity consumption of 1 lakh or more, the return should be filed;

5]If someone has spent 2 lakh or more on foreign travel for himself or any other person, need to file ITR;

6]If anyone holds any property outside India, please get your ITR filed;

7]If a person is a beneficiary of any property outside India, please file your ITR; And

8]If one has claimed relief under a tax treaty like DTAA, then go ahead and file ITR.

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