Think you don't need to file ITR? These 5 people thought so, and they were all wrong
ITR Filing, Income Tax Season: Nil ITR: The last date for filing income tax return (ITR filing) is July 31, 2024. The income tax rule says that people with income up to Rs 2.50 lakh in the old tax regime and up to Rs 3 lakh in the new tax regime don't need to pay income tax as they fall in the exemption category. As a result, they can opt not to file the income tax return (ITR Filing). But they can file Nil ITR, which has its own benefits, such as that it can work as an address proof while for a visa or as a valid address proof. By filing Nil ITR, a taxpayer communicates to the Income Tax (I-T) department that they don't have any tax liability. Here, we are giving examples of five types of people who might have thought that don't need to file Nil ITR, but they should have to get other benefits.
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Senior citizen with Rs 15,000/month
A senior citizen earning Rs 15,000 a month in the form of a pension or from other sources is earning Rs 1,80,000 a year. They can file the Nil ITR.
A student with education loan
A student with education needs to show the I-T department that they have loan liability. They can claim a deduction for the interest paid on their education loan under Section 80E of the Income Tax Act, 1961.
Self-employed with Rs 25,000 monthly income
With Rs 25,000 monthly income, or Rs 3 lakh income a year, you fall in the exemption category in the new tax regime, but filing ITR may help you in getting loans or funding to extend your business.
Freelancer earning Rs 2 lakh a year
Freelancers need to file ITR 4 form. They can file it in the presumptive income scheme under Sections 44AD and 44AE. From the tax point of view, freelancing is considered a business and profession, so filing an ITR can help as income proof if you want to increase your work further through loans, etc.
Teacher earning RS 15,000 a month
A tutor should maintain books of accounts if their total net profits from tuition are over Rs 1,20,000 in a financial year. If they fall in the income tax bracket, they can claim deductions for costs such as stationary, advertisement costs for tuition promotion, and the cost of photocopies used in teaching.