Why Students And First-Time Earners Should File ITR Early
When you file ITR, you create documented proof of income. This record often becomes crucial while applying for loans, credit cards or renting property.
In India, many students and first-time earners believe filing an Income Tax Return (ITR) is only meant for high-income individuals or business owners. However, even if your annual income is below the taxable limit, filing an ITR can bring long-term financial benefits and should be seen as a good financial habit from the very start of your earning journey.
1. Build a Financial Record
When you file an ITR, you create documented proof of income with the Income Tax Department. This record often becomes crucial while applying for loans, credit cards, or renting property. For example, if you plan to buy a car or home in the future, lenders often ask for ITR copies of previous years to assess your repayment capacity.
2. Simplify Visa Processing
Many foreign consulates, including those of the USA, UK, Canada, and Australia, require ITR documents as proof of financial stability when you apply for a student or work visa. Having at least a couple of years of ITR filing history strengthens your application.
3. Claim Tax Refunds
Even students and beginners may face Tax Deducted at Source (TDS) on stipends, part-time job earnings, or freelance work. Filing an ITR helps claim a refund of any excess tax deducted. For instance, if your stipend is below the taxable limit but TDS has been deducted, you can get the entire amount refunded by filing returns.
4. Carry Forward Losses
If you have invested in shares, mutual funds, or crypto and suffered a capital loss, filing ITR allows you to carry forward these losses for up to eight years. These losses can be adjusted against future capital gains, reducing tax liability later.
5. Future Tax Compliance and Discipline
Starting early helps students and first-time earners understand the process of filing returns, PAN-Aadhaar linking, and managing digital tax platforms like the income tax portal. This builds confidence and ensures they are well-prepared when their income eventually crosses the taxable limit.
6. Build Better Financial Habits
Filing ITR encourages young earners to track income and expenses, invest wisely, and adopt better financial planning. It instils discipline and an understanding of how taxation works in India.
Filing ITR is not just a legal formality but an investment in your financial future. For students and first-time earners, it sets the foundation for responsible money management and opens up opportunities that require proof of stable and legal income.
view comments
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
34 minutes ago
- News18
Air India Express Flight Fails To Take Off From Hindon Airport, Reports Technical Snag
Last Updated: The airline has provided guests with options, including hotel accommodation, complimentary rescheduling, or cancellation with a full refund. An Air India Express flight on Sunday failed to take off from Uttar Pradesh's Ghaziabad following a technical issue and subsequent watch hour limitations at the airport, an Air India Express Spokesperson said. The spokesperson said that the flight will depart once the airport is available for commercial operations in the morning. The airline has provided guests with options, including hotel accommodation, complimentary rescheduling, or cancellation with a full refund. 'One of our flights from Hindon is operating with a delay, as it could not take off following a technical issue and subsequent watch hour limitations at the airport. The flight will depart once the airport is available for commercial operations in the morning. We have provided guests with options including hotel accommodation, complimentary rescheduling, or cancellation with a full refund," the spokesperson added. Further details are awaited. Meanwhile, on July 23, an Air India Express flight (IX375) from Kozhikode to Doha returned to its origin shortly after takeoff due to a technical issue. Flight IX375, a Boeing 737-86N was scheduled to depart Kozhikode at 08:50 AM and arrive in Doha by 10:50 AM. The aircraft took off slightly behind schedule at 09:17 AM but was diverted back to Kozhikode shortly after departure. It was diverted to Calicut International Airport in Kozhikode, as per Flightradar24. view comments First Published: July 28, 2025, 10:40 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
an hour ago
- News18
Markets fall in initial trade dragged by Kotak Bank, trade deal uncertainty
Last Updated: Mumbai, Jul 28 (PTI) Benchmark equity indices Sensex and Nifty declined in early deals on Monday dragged down by heavy selling pressure in Kotak Mahindra Bank and uncertainty related to the India-US trade deal. Persistent foreign fund outflows and weak trends in Asian markets also hit investors' sentiment. The 30-share BSE Sensex dropped 369.58 points to 81,093.51 in early trade. The 50-share NSE Nifty declined 104.3 points to 24,732.70. From the Sensex firms, Kotak Mahindra Bank tumbled nearly 7 per cent after the company on Saturday reported a consolidated net profit of Rs 4,472 crore for the June quarter, and flagged stress on the retail commercial vehicle portfolio due to adverse macroeconomic conditions. The profit in the year-ago period was Rs 7,448 crore, but it had included gains of over Rs 3,000 crore on its stake sale in the general insurance arm, while the net profit for the March quarter stood at Rs 4,933 crore. Tata Consultancy Services, Bharti Airtel, Infosys and Eternal were also among the laggards. However, Tata Motors, Bajaj Finserv, UltraTech Cement and Power Grid were among the gainers. Vijayakumar further added that the sharp cut in the IT index has been dragging the market down, and there is no respite in this in view of the 2 per cent cut in its global workforce announced by TCS. FII selling of Rs 13,552 crore in the cash market last week has added to the weakness in the market, he said. In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index traded lower while Hong Kong's Hang Seng quoted in positive territory. The US markets ended higher on Friday. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,979.96 crore on Friday, according to exchange data. Global oil benchmark Brent crude climbed 0.29 per cent to USD 68.64 a barrel. On Friday, the Sensex tanked 721.08 points or 0.88 per cent to settle at over a month's low of 81,463.09. The Nifty dropped 225.10 points or 0.90 per cent to a month's low of 24,837. PTI SUM SUM ANU ANU view comments First Published: July 28, 2025, 10:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
an hour ago
- News18
Rupee rises 9 paise to 86.43 against US dollar in early trade
Mumbai, Jul 28 (PTI) The rupee appreciated 9 paise to 86.43 against the US dollar in early trade on Monday, tracking a softer greenback, though the upside for the local unit was limited as US-India tariff negotiations remained in focus. Forex traders said the rupee was trading in a narrow range as the demand for dollar from importers continued to keep the American unit well bid against the rupee. Moreover, the support from developing trade agreements was negated by the sustained foreign fund outflows, they said. At the interbank foreign exchange, the domestic unit opened on a positive note and touched 86.43 against the greenback in initial deals, higher by 9 paise from its previous closing level. On Friday, the rupee declined 12 paise to settle at 86.52 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.03 per cent to 97.61. Brent crude, the global oil benchmark, went up by 0.48 per cent to USD 68.77 per barrel in futures trade, supported by developing trade agreements. Brent oil prices edged up from three week lows in Asian trading to USD 68 per barrel after EU and US reached a trade agreement that eased tariff concerns and boosted future energy demands, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP. The investors are now watching developments from FED which begins its two-day policy meeting from Tuesday, Bhansali said. 'The Indian rupee is expected to be steady near 86.47 after the European deal was done but India is still away from a conclusive deal," Bhansali said, adding that the month-end demand may keep the rupee stable. Meanwhile, in the domestic equity market, Sensex declined 67.43 points or 0.08 per cent to 81,395.66, while Nifty fell 14.25 points or 0.06 per cent to 24,851.25. Foreign institutional investors (FIIs) offloaded equities worth Rs 1,979.96 crore on a net basis on Friday, according to exchange data. Meanwhile, India's forex kitty declined by USD 1.183 billion to USD 695.489 billion during the week ended July 18, the RBI said on Friday. In the previous week, the overall kitty had dropped by USD 3.064 billion to USD 696.672 billion. The reserves had touched an all-time high of USD 704.885 billion at end-September 2024. PTI DRR ANU ANU view comments First Published: July 28, 2025, 10:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
