10 benefits of filing ITR even if you are below taxable bracket
If you don’t file ITR, the belated return could lead to extra interest at 1% per month for the remaining tax payable by you.
Most millennials think that if their salaries fall below the taxable bracket they shouldn’t be filing ITR (Income Tax Returns). However, that is not true. One needs to file income tax return the time they enter a job and start earning.
Alok Agrawal Senior Director with Deloitte India said that apart from being a good corporate citizen, an income tax return also serves as a proof of income earned by an individual and total taxes paid.So it is always advisable to file one’s tax return even when the taxable income falls below the basic exemption threshold (currently the limit is Rs 2.5 lakhs for ordinary individuals, Rs 3 lakh for senior citizens and Rs 5 lakhs for super senior citizens),” he said.
“Filing of a tax return is mandatory to avail all deductions in respect of investments (e.g. for employee contribution to Provident Fund under Section 80C) and to claim exemption of the eligible long-term capital gains (e.g. investment in a new residential house after the sale of another). In other words, if total income before claiming deductions of these eligible investments and exemption of eligible capital gains is more than the above basic exemption thresholds, a tax return would be required to be filed,” he said.