Is it necessary to file ITR?

Hi,

is it necessary for employees to file ITR even if employer has accurately deducted taxes?

2 Likes

Hi Chitra,

Yes it is necessary for employees to file ITR. Income tax returns should be filed by every individual with an income of over Rs. 2.50 lakhs or more. There are chances of getting the TDS amount back.

Regards
Nagaraj J

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Yes, its better to file ITR so you can also add if employer or you missed any investments to be considered for exemptions

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1. Easy Loan Approval

Filing the ITR will help individuals, when they have to apply fora vehicle loan (2-wheeler or 4-wheeler), House Loan etc. All major banks can ask for a copy of tax returns

2. Claim Tax Refund

If you have a refund due from the Income Tax Department, you will have to file an Income Tax Return to claim the refund.

3. Income & Address Proof

Income Tax Return can be used as a proof of your Income and Address.

4. Quick Visa Processing

Most embassies & consulates require you to furnish copies of your tax returns for the past couple of years at the time of the visa application.

5. Carry Forward Your Losses

If you file return within due date, you will be able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years.

2 Likes

Agree with @Ankit there are lots of benefits, and more over it attracts penalty if you don’t do :slight_smile:

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