Why It Is Necessary to File an ITR Despite Non-Taxable Income

The fiscal year 2022–2023’s income tax returns (ITRs) must be submitted by July 31, 2023. ITR filing has already started for a large number of people. Generally, those with taxable income are obligated to pay income tax. However, because they are excused from paying income tax by the government, persons with non-taxable income sometimes dispute the need of filing ITRs.

You must submit an income tax return even if your income is not taxable. There are several benefits to submitting an income tax return, and we’ll explain them to you today.

Most Trustworthy Income Documents

You may get a priceless certificate that serves as the most reliable official proof of your yearly income by filing an Income Tax Return (ITR). Significant benefits of this credential make it simpler to get loans, credit cards, and other financial goods. Your credit history is also established thanks to it. In addition, submitting a return entitles you to a tax refund if tax was withheld at source (TDS) from an individual who is not required to pay income tax.

Assistance in Starting a New Business

Even if you want to launch a new firm, filing your income tax return is advantageous. It could help you get contracts with government agencies. Additionally, if you submit your return manually, the receipt acts as address verification, making it a legitimate address document in a variety of circumstances.

enables the acquisition of visas

Income tax returns are often requested when requesting a visa to go abroad. Authorities handling visas may ask for ITRs covering three to five years. These records provide the government of the nation you wish to visit the ability to assess your financial condition.

Help in Reducing Stock Market Losses

If you have assets in mutual funds or the stock market, ITR may also be helpful. It is possible to carry over any losses from these investments to next years. However, in order to take advantage of tax exemptions by offsetting the loss against capital gains in the following year, you must file your ITR prior to the income tax filing deadline.