File ITR even if you are below the tax limit
MOST MILLENNIAL THINK that if their salaries fall below the taxable bracket they shouldn’t be filing ITR (Income Tax Returns). However, that is not true
Experts say that apart from being a good corporate citizen, an income tax return also serves as a proof of income earned by an individual and total taxes paid. So it is always advisable to file one’s tax return even when the taxable income falls below the basic exemption threshold. Check a few more benefits below:
Having an ITR receipt is important because it is more detailed than Form 16, entailing your income and taxation along with revenue from other sources.
ITR receipt is sent to your registered address, which can serve as residential proof.
Being a diligent IT filer makes it easier for banks to assess your source of income when you apply for loans like an auto loan, home loan and so on.
Unless you file the ITR you cannot recompense your expenses or losses in the previous financial year to the current. As per the income-tax provisions, if tax returns are not filed on time unadjusted losses (with some exceptions) cannot be carried forward to future years. Hence, to ensure that the losses are carried forward for future adjustment, a return would be required to be filed.
If you don’t file ITR, the belated return could lead to extra interest at one percent per month for the remaining tax payable by you. For instance, banks would.
deduct tax from interest on fixed deposits exceeding a certain threshold. To claim a refund of tax deducted by the bank on the interest income, a tax return would be required to be filed regardless of the taxable income.
Avoid penalties or scrutiny from the tax department From FY 2017-18 Rs 10,000 would be levied for non- filing of ITR.
Banks can reject your credit card application if you haven’t filed your ITR.
At times visa authorities ask for copies of past tax returns, hence to apply for a visa tax return would be required to be filed. Embassies, those of US, UK or Canada when processing your foreign visa application are particular about your tax-compliance.