3 Reasons To File ITR Even if Your Income is Not Taxable

Only 15 days are left to file income tax returns (ITR) for last financial year FY 2015-16 (AY 2016-17) and many people are still confused if they should even file their ITR or not

If the total gross income of any individual in FY 2015-16 was more than the taxable limit, he or she needs to file income tax returns. The taxable limits are as follows:

For people less than 60 Years of age – Rs 2.5 Lakhs
For people between 60 to 80 years of age – Rs 3 Lakhs
For people above 80 years of age – Rs 5 Lakhs

Benefits of filing ITR:

Even if your income is less than taxable limits we believe you should file ITR  for following benefits:

1. Claiming Tax Refunds:

These days TDS has become mandatory for many payments. The employer deducts TDS from salary, bank from FD interest rates, companies from payments to consultants, etc. Due to this you might have paid tax already even when you are not within taxable limits. You can get refund for the tax paid by filing ITR.

2. Processing of Loans:

If you are planning to apply for a loan in near future then you must file ITR. Most banks insist on 2 to 3 years of ITR. ITR acts as an authentic proof of your income over years

3. Carry forward losses:

One can carry forward short term capital losses including stock market losses and set it off against gains in years to come. For this you need to file ITR showing the relevant losses.

Tax filling has become pretty easier these days with all the necessary information available online. Even if you choose to hire a charted accountant it won’t cost much especially in low income cases. So, go for it!

Happy Trading
The Multiplier

Next Post »


Write comments
July 16, 2016 at 4:22 PM delete

Tax filing is essential.. Advantages clearly highlighted Abhishek.. Thanks..

Puru ji
July 17, 2016 at 10:11 AM delete

Thank you for sharing the info.