In case of taxable investments made in the housewife’s name, ITR must be filed.
A housewife with zero income should file income tax returns as it helps in getting bank loans and the ITR documents also play a crucial role in getting a visa.
When your income exceeds a specific threshold, you must pay taxes on it and for that, you have to file income tax returns (ITR). As per the income tax department, a total of 3.06 crore ITRs have been submitted till July 18. Filing an ITR is critical for every person, which also includes housewives who do not have a regular source of earnings. In some cases, housewives may receive revenue from various sources such as interest on FDs or rental income even if they do not have a job or a business and have no primary source of earnings.
But in most cases, housewives may not have a personal source of income and hence, they don’t file ITR. But experts suggest that they should nevertheless file income tax returns.
A homemaker who has an income of less than Rs 3 lakh would not be taxed under the revised tax system. According to the new tax system, the minimum deduction has been raised to Rs 5 lakh if a housewife is considered a super senior person, meaning she is 80 years of age or more.
Let’s have a look into the scenarios in which a housewife should file ITR:
Income From Investment
To have financial stability or to reduce the household’s financial burden, the parent or husband may have placed an investment in the name of a housewife. These investments in bank accounts, mutual funds, equities, etc. may accumulate over time and produce sizable income. And in case the returns on these investments under a housewife’s name are taxable, ITR must be filed.
Interest From Fixed Deposits Or Gifts Received
Vishvajit Sonagara, founder of Quicko states, “FD interest is taxable as per the slab rate. Hence, ITR is required to be filed in case interest income is more than Rs 2.5 lakh. Apart from FD, if the homemaker has invested the sum in any other instrument and earnings from it is above the exemption limit, she will have to file ITR. Gifts received from specified relatives on certain occasions are not included in taxable income irrespective of the quantum of the gift amount.”
Benefits of Filing ITR with No Liable Tax
Even if you are a stay-at-home mother or housewife without a reliable source of income or zero income, filing an income tax return makes it simpler for you to get a loan. You must file ITR for at least three consecutive years to be eligible for a loan. When taking house loans in the name of a woman, many banks provide a reduction in the interest rate. Your ITR serves as evidence of your income that the bank can use to determine your eligibility.
Not only is it simpler to obtain a loan, but also to receive a TDS refund. Another benefit of providing ITR evidence when requested by authorities is the eligibility to apply for a visa and the ITR documents play a crucial role in getting a visa. In these circumstances, a NIL ITR needs to be filed.
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