Here's why filing an Income Tax Return (ITR) is essential and who must do it, in 7 points.
1
If excess tax was deducted from your income, filing an ITR allows you to claim that money back from the government.
2
Banks and lenders often require proof of consistent income., ITRs act as evidence for loan applications.
3
ITRs serve as official documents for income and address verification, this can be useful for obtaining Aadhaar cards, licenses, passports, etc.
4
Embassies sometimes request ITR copies for visa applications. It demonstrates financial stability and fulfils tax obligations.
5
There's a minimum income limit for mandatory ITR filing, the exact limit depends on your income source.
6
If you have high-value transactions like large bank deposits or investments, you might need to file an ITR.
7
If you want to carry forward business losses or claim deductions for investments, filing an ITR is necessary.