Why Filling ITR is Essential and Who Must File it?

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Here's why filing an Income Tax Return (ITR) is essential and who must do it, in 7 points.

1

Claim Tax Refunds

If excess tax was deducted from your income, filing an ITR allows you to claim that money back from the government.

2

Easy Loan Approval

Banks and lenders often require proof of consistent income., ITRs act as evidence for loan applications.

3

Proof of Income and Address

ITRs serve as official documents for income and address verification, this can be useful for obtaining Aadhaar cards, licenses, passports, etc.

4

Faster Visa Processing

Embassies sometimes request  ITR copies for visa applications. It demonstrates financial stability and fulfils tax obligations.

5

Income Above Minimum Limit

There's a minimum income limit for mandatory ITR filing, the exact limit depends on your income source.

6

Specific Transactions

If you have high-value transactions like large bank deposits or investments, you might need to file an ITR.

7

Seeking Tax Benefits

If you want to carry forward business losses or claim deductions for investments, filing an ITR is necessary.