Many salaried employees neglects to file Income Tax Returns(ITR) thinking that their salary doesn’t meet the threshold limit of 2.5 Lakh Per annum. But do you know that you can still file ITR to claim TDS Deductions; if any and avail tax exemptions under various investment options?Surprised! Read the full article and you will have an idea!
Who Should File ITR ?- Those who are 60 years of age and has taxable income of over 2.5 Lakh should mandatory file IT Returns.
Senior citizens in the age group of 60-80 would not file IT Returns subject to their income is below 3 lakhs per annum.
Super senior citizens(aged above 80)need not file IT Returns subject to their income is below 5 lakhs.
If the taxable income exceeds the above threshold limits, they have to file IT Returns.
But as per the recent amendment in the budget 2021 senior citizens above 75 years of age need not file IT Returns if their pension and the fixed deposit proceeds are maintained in the same bank.
Benefits of Filing ITR even you are not a tax-payer-
- Non Tax-Payers can also file IT Returns claiming their income details and the current investments he had during the financial year.
- Because banks deducts TDS(Tax Deducted at Source) if your interest income exceeds 40,000 rupees in a financial year(50,000 rupees for senior citizens).
- You can claim refund on the TDS deducted by submitting all your income proofs to the IT Department.
- Besides this, you can also claim “Tax Rebate” of 12,500 rupees under section 87 A of the income tax act, if your income is above 2.5 lakh but below 5 lakh rupees. Your Tax Rebate can be applied at the time of ITR Filing.
- You can also set capital-losses to the capital gains arising on the sale of shares, mutual fund units is possible only through ITR Filing
- By Filing IT Returns, you can avail loans from the banks and financial institutions easily showcasing your ITR Proof
- Central Government made it mandatory to file IT Returns, if you spend heavily on electricity bill, foreign tour and deriving income from foreign countries.
So Filing IT Returns is a better indeed to claim TDS Deductions, avail Tax Rebates,Setting Capital losses to Capital Gains, easy access to avail loan etc.
It is better to preserve IT Returns for at least 6 years to avoid tax notice from the IT Department in the future!