Why You Should File ITR: Insights from Sumit Mehta

Sumit Mehta, a finance influencer and digital creator known for his insightful advice about finance. Recently, he shared his thoughts on why you should file an ITR, even if your annual income is less than Rs 500,000. Let's explore his advice on this topic.

Do you still need to file an ITR if your annual income is less than Rs 500,000?

According to Sumit Mehta, if you make less than Rs 500000 a year, you don't need to file an ITR because your tax liability would be zero. However, he advises that you should still file your ITR. Here's why:

Benefits of Filing ITR

Income Proof:

The first benefit of filing an ITR is income proof. Filing an ITR serves as proof of your income. This can be crucial when you need to demonstrate your earnings.

Loan Applications:

Whenever you go to a bank to apply for a loan, they ask you for income proof. At that time, your ITR worked as a key document that helped determine your loan eligibility. So on the basis of your ITR, they calculate whether they should give you a loan or not.

Visa Applications:

If you plan to travel abroad, many countries ask for your income tax for your visa application. Having your ITR filed can make the process easier and can serve as proof of your financial stability.

Additional Advice

Sumit Mehta also suggests that if there are family members who do not make any income should file an ITR. This can be beneficial for future visa applications and can also help in increasing your loan eligibility.

View this post on Instagram

A post shared by The 1% Club (@onepercentclub)

In short, if your income is less than Rs 500000 annually then you are not legally required to file ITR, but doing so can give you many benefits. Filing your ITR using Sumit Mehta's advice can be a smart move for your financial planning and future needs.