Winning Bizness Desk
Mumbai.The process of filing Income Tax Returns (ITR) for the financial year 2024-25 is now underway, with the last date set as September 15, 2025. While many believe that those earning below the basic exemption limit of Rs 2.5 lakh annually are not required to file returns, tax experts advise otherwise. Even if you're outside the taxable bracket, filing ITR can be highly beneficial in various financial and legal scenarios.
What is ITR and why is it relevant?
ITR is essentially a declaration of your annual income to the government. It records how much you earned, how much tax was due, and how much you’ve already paid in advance. The tax department uses this data to determine whether you need to pay additional tax or are eligible for a refund. Filing ITR isn’t just about paying taxes—it also acts as a key document in multiple official and financial procedures.
Loan approvals made easier
One of the main advantages of filing ITR is that it serves as proof of income. Banks and non-banking financial companies (NBFCs) commonly ask for ITR documents when processing loan applications. Regular ITR filing can boost your credibility and increase the chances of loan approval. It not only helps in getting loans but also assists in accessing other financial services, such as credit cards, overdrafts, or EMI-based purchases.
ITR essential for visa processing and refunds
When applying for a visa to travel abroad, several foreign embassies require ITR documents of the past 3 to 5 years to assess your financial stability. In addition, if any tax was deducted at source (TDS) from your earnings—like interest or salary—you cannot claim the refund unless you file an ITR. The income tax department processes your return and credits any refund directly into your bank account upon successful assessment.
Carry forward of capital losses
Filing an ITR also allows you to carry forward losses incurred in stocks or mutual fund investments. If you suffer capital losses in one financial year, filing ITR within the deadline ensures you can offset these losses against future capital gains. This carry-forward mechanism helps reduce your tax burden when you eventually make a profit on your investments.
Summary Points:
1. ITR filing for FY 2024-25 is open till September 15, 2025.
2. Those earning below Rs 2.5 lakh should also file ITR for various benefits.
3. ITR serves as official proof of income for loan approvals.
4. Regular ITR filing improves your eligibility for financial services.
5. Visa applications may require past years' ITR documents.
6. Tax refunds can only be claimed after filing ITR.
7. Filing enables carry forward of capital losses to reduce future tax.
