Necessary for New Doctors to File ITR
Yes, it is generally necessary for new doctors in India to file an Income Tax Return (ITR) even if their income is low.
The reason for this is that the Income Tax Act of India has specific provisions that require individuals, including doctors, to file an ITR if their total income exceeds the basic exemption limit. The basic exemption limit for individuals under 60 years of age was ₹2.5 lakh.
Even if a new doctor’s income is below this threshold, there can be several reasons why they should still consider filing an ITR:
1. Compliance with the Law:
Filing an ITR is a legal requirement for those whose income exceeds the specified limit. It helps individuals fulfill their civic duty and abide by tax laws.
2. Documentation for Financial Transactions:
An ITR serves as proof of income and is often required for various financial transactions, such as applying for loans, visas, or credit cards. Having a documented financial history can be beneficial in the future.
3. Claiming Deductions and Benefits:
Even if the income is low, filing an ITR allows doctors to claim deductions under various sections of the Income Tax Act. These deductions can help reduce the taxable income, resulting in a lower tax liability.
It’s important for new doctors to consider their specific circumstances and consult with a tax professional if needed to determine whether they need to file an ITR.
Tax regulations can change, so it’s essential to stay updated with the latest rules and thresholds.
Please note that for the most current and accurate information, you should consult the Income Tax Department of India or a qualified tax advisor.
To visit: https://www.mca.gov.in/
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