Income Tax Return Filing: 10 benefits of filing ITR even when not compulsory
Filing of the return of income is mandatory for people in India if their income exceeds the basic exemption limit in a financial year, which under the old tax regime is Rs 250,000 in case of individuals who are not senior citizens, Rs 300,000 in case of senior citizens and Rs 500,000 in case of super senior citizens. Under the new tax regime, the basic exemption limit is Rs 250,000 for FY 2022-23, irrespective of the age of individual taxpayers.
Besides, ITR filing is also mandatory in certain cases like when someoane has paid more than Rs 100,000 towards consumption of electricity or has undertaken foreign travel for over Rs 200,000 in an FY, or wants to claim a tax refund or carry forward losses to the next financial year.
However, there are many other benefits related to filing the tax return even for those who are not otherwise mandatorily required to file an ITR. Here is a look at some of them:
1. Refund Claim: When a person has paid excess tax (by way of TDS, TCS, or advance tax), he can claim a refund of such excess tax by filing an ITR. He can’t claim a refund if he fails to file his income tax return on time.
Also Read: ITR Filing for FY 2022-23: Five essential steps to remember while filing income tax returns
2. Carry forward of losses: If you have computed losses from any head of income which cannot be set-off against the current year’s income, the same would be allowed to be carried forward only if a tax return has been filed for the year of incurring the loss.
“If an individual incurs any loss during a financial year, he can carry forward such losses to future years by filing an income tax return. This will subsequently help the assessee to reduce the tax liability in subsequent years by setting off such
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