Why Housewives With Zero Income Should File ITR
A housewife with no income should submit income tax returns because they aid with bank loans and the ITR paperwork are also required when applying for a visa.
When your income surpasses a certain threshold, you must pay taxes on it and file income tax returns (ITR). According to the IRS, a total of 3.06 crore ITRs have been filed as of July 18. Filing an ITR is essential for everyone, including housewives who do not have a steady source of income. Housewives may obtain income from numerous sources, such as interest on FDs or rental income, even if they do not work or own a business and have no major source of income.
However, because most housewives do not have a personal source of income, they do not file ITR. Nonetheless, experts advise that people file income tax returns.
Under the new tax scheme, a housewife earning less than Rs 3 lakh would not be taxed. According to the new tax system, the minimal deduction for a housewife who is designated a super senior person, meaning she is 80 years of age or older, has been raised to Rs 5 lakh.
Consider the following instances in which a housewife should file an ITR:
Income From Investment
To achieve financial stability or to alleviate the financial load on the household, a parent or husband may have made an investment in the name of a housewife. These investments in bank accounts, mutual funds, shares, and so on can accumulate over time and generate substantial income. In addition, if the returns on these investments made in the name of a housewife are taxable, an ITR must be lodged.
Interest From Fixed Deposits Or Gifts Received
According to Vishvajit Sonagara, founder of Quicko, “FD interest is taxable at the slab rate.” As a result, if your interest income exceeds Rs 2.5 lakh, you must file an ITR. Aside from FDs, if the homemaker has invested the money in any other instrument and the earnings from it exceed the exemption limit, she must submit ITR. Gifts received from particular relatives on specific occasions are not taxable income, regardless of the value of the present.”
Even if you are a stay-at-home mother or housewife with little or little income, submitting an income tax return makes it easier for you to acquire a loan. To be qualified for a loan, you must have filed ITR for at least three years in a row. Many banks offer interest rate reductions when taking out home loans in the name of a woman. Your ITR serves as proof of your income for the bank to consider in determining your eligibility.
It is now easier to not only secure a loan, but also to collect a TDS refund. Another advantage of submitting ITR documentation when required by authorities is the ability to apply for a visa, and the ITR documents play an important role in this.
Do we need to file ITR for zero income?
Such individuals do not have to file an income tax return as they do not fall in the tax bracket. But if they file ITRs even when their income is below Rs 2.5 lakh, it is termed 'Nil Return'. Although it is not mandatory to file nil returns, there are many benefits to filing nil returns,
Is it mandatory to file income tax return for housewife?
Even if they do not possess any direct income, housewives can have 'income from other sources' such as interest from fixed deposits, rent from a property owned and others. If the income from such sources exceeds the limit prescribed by the Indian government, a housewife would need to file her ITR.
How much income is tax free for housewife?
If the income of a housewife exceeds the stated slab, they must file an ITR. However, women under 60 years of age are exempt from paying taxes if their income is less than ₹7 lakhs. Meanwhile, individuals over 60 years old are exempt from tax if their income is below ₹3 lakhs.
What is the benefit of zero ITR filing?
Escaping the brunt of TDS In the event that the form could not be filed on time for any reason, it is advisable to file a “NIL ITR
Who is not eligible for ITR?
If an individual has any capital gains income such as profit from the sale of mutual funds, gold, equity shares, house property, and other similar assets, then they are not eligible to file their tax return using ITR-1 form.