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Have you just started working and your income falls below the taxable limit? Even in this scenario, filing tax returns is important. There is a misconception that you don’t need to file if you fall below the taxable limit. But there are many benefits of filing ITR even if your annual income is less than Rs.2.5 lakhs.
10 benefits of filing ITR even if you are below taxable bracket If you don’t file ITR, the belated return could lead to extra interest at 1% per month for the remaining tax payable by you.
If the income for individuals or as specified for different groups is below the taxable limit of Rs 2.5 lakh, then it is not mandatory to file the ITR. But in case you opt to file ITR, your tax liability would be ‘NIL’. Therefore, such a return filing is also known as NIL return.
It is mandatory to file ITR if your income exceeds Rs.2,50,000. If your income is less than the mentioned amount, it is not necessary to file ITR. But even if you don’t have a taxable income, a filed tax return is an important and valuable documen.
Many of these employee benefits are reported on your T4 slip and may even bump you into a higher tax bracket. "It’s important to know what benefits are being taxed so you can understand all the.
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Benefits of filing income tax returns. It helps at the time of applying for loan, travelling abroad, buying a high value insurance cover and claiming refund. anil kumar started working for an information technology major a year back. During the induction process, Kumar and his peers were told to save up and invest to save on tax outgo.
Conversely, you may also lose out on a tax refund owed to you by not filing your taxes. Additionally, even if you belong to the exempt category (before 80c deductions), filing your tax return can have a beneficial impact in more than one aspect of your life, that you never probably considered. Top 5 Benefits of Filing Income Tax Return
More From Money . Many people are confused when it comes to filing tax returns when the income falls below the taxable limit or when no taxes are due. If you carefully compare the benefits of filing the return and the effort involved, the odds will always be in favour of filing your tax return every year.