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Is it mandatory to file ITR for Salaried Employees?
There are many citizens in this country who are under the impression that, if they the TDS is deducted from their salary, they are no supposed to file Income Tax Return. Let us first understand that, filing Income Tax Return and paying income tax are two different and distinct liabilities. Here, we will give you a detailed information about legal position of a Salaried employees and under what circumstances they are supposed to file Income Tax Return.
When a Salaried Employee is supposed to file ITR?
Individuals who earn taxable income or income that is above the exemption limit, it is mandatory for them to file Income Tax Return in India. For Financial Year 2018-19 the exemption limit is Rs. 2.5 Lakh and for the Financial Year 2019-20, the exemption limit is Rs. 5 Lakh.
Benefits of filing Income Tax Return for Salaried Employees
There are a couple of benefits for salaried employees, if they file their Income Tax Return on regular basis. Here are a few of them: -
- If you have more taxes than your tax liability, then the only way you can get a tax refund is by filing Income Tax Return. Once you file your Income Tax Return, you can claim the Income Tax Refund. It is mandatory to file Income Tax Return, in order to get Income Tax Refund.
- Moreover, if you want to go abroad and are applying for Visa, then you are supposed to show the details of Income Tax Return for past three years.
- If you are planning to take a home loan, then also you will have to provide the details of your Income Tax Return of last three years, as the proof of your Income.
So, now you know the value of filing Income Tax Return, it is recommended for the taxpayers who do not have taxable income to file voluntary Income Tax Return, in order to avail the above-mentioned benefits.
