Everyone knows that the tax exemption limit for senior citizens above 60 years and below 80 years is Rs 3 lakh, while for super senior citizens i.e. above 80 years the limit is Rs 5 lakh. Even if your salary is less than the income tax limit, you should file your income tax return, as it has many benefits.
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1. Loan eligibility is determined
If you are going to take a loan, the bank will check your eligibility, which is based on income. How much the bank will lend you depends on how much you have earned on your income tax return. In fact, ITR is a document that all banks use for easy processing of loans.
Banks usually demand 3 ITRs from their customers during loan processing. Therefore, if you want to buy a home with a home loan, or a car loan or a personal loan, you need to file an ITR because it makes it easier to get a loan.
2. Required for tax refund
If you file ITR, you can save tax on interest earned on savings schemes like term deposits. Taxes can also be saved on dividend income. You can claim tax through ITR refund, if the total income from multiple sources of income is more than Rs 2.5 lakh, then you can claim deducted TDS again.
3. Address, valid documents for proof of income
The income tax assessment order can be used as proof of a valid address. It can also be used to make Aadhaar cards. Form-16 is issued to employees by the company. Which is proof of his income. Even for self-employed or freelancers, ITR filing documents serve as a valid income proof.
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4. Can claim damages
A taxpayer has to file an income tax return within a certain date to claim any loss. This loss can be in the form of capital gain, business or profession. Income-tax rules allow those who file ITRs in the relevant assessment year to recoup losses against capital gains.
5. Documents required for visa processing
If you are going somewhere abroad, most countries claim ITR. It shows that the person is a tax compliant citizen. This gives visa processing officers a clear idea of your current financial situation and income. This makes it easier for you to get a visa.
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