The due date for filing income tax return (ITR) for FY 2021-22 is July 31, 2022. Those earning up to Rs 2.50 lakh in a financial year are not liable to file an income tax return. However, filing a nil income tax return will help you in the following ways:
To avail of loans: All lenders ask for proof of filing income tax return. Filing a nil ITR would give you a record of income tax filing and strengthen your case for availing of credit.
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To get a visa: Visa-issuing authorities ascertain your income, to approve your request. If you are permanently moving to another country, the ITR document would act as an income proof, based on which they would determine your eligibility.
As proof of income: Income proof may be needed for various paperwork, including buying insurance and availing of government-sponsored subsidies. A nil ITR would act as the government-approved proof of income.
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Scenarios in which you have to file ITR even if your income is below the exemption limit
Note that filing the ITR is mandatory even if you earn only up to Rs 2.50 lakh in a financial year, in the below-mentioned circumstances:
- If you paid more in taxes than required.
- If you have foreign assets or income.
- If you paid an electricity bill of more than Rs 1 lakh.
- If you spent Rs 2 lakh or more on foreign travel.
- If you deposited more than Rs 1 crore in various bank accounts.
- If you suffered losses in the stock market, mutual funds or properties. Nil ITR filing will help you set off losses through income from other sources.
Check out : Know all about ITR filing last date