Advantages of filing ITR even if total income is below the exemption limit 2.5 Lakhs

We know the basic exemption limit for filling ITR is 2.5 Lakhs. But many times people ask me should we file ITR when our total income is below 2.5 Lakhs. So here are some of the reasons why we should file ITR even when total income is below 2.5 Lakhs:

1. It is income proof for any small business which can be used to get insurance and other products. Furthermore, it serves as proof of accumulated earnings over the years.
2. It helps in the hassle-free visa application procedure, as at times visa authorities ask for copies of past tax returns.
3. Ease of getting the loan as a bank does insist on ITR for any kind of loan.
4. Even if you have losses do file as it. It helps in compensating losses in the next financial year via carrying forward losses and setting off against profits.
5. In case you have high-value transactions it is better to file to avoid notices from the tax department for non-filing.
6. If you do not file till the due date remember you will not able to file the returns at all, as the IT department has stopped accepting past returns (which they accepted a few years back and one had the option to file 3 years' returns at one go).
7. Motor accidental claims, matrimonial claims, and other legal claims are based on earning capacity. This can be one of the proof.
8. Discipline to maintain records up to date surely helps when they are needed later for any legal or social purpose.

So file your ITR today.

For more information contact us on hencyrshah@gmail.com or http://tiny.cc/HRS.