No.1 creating financial history
When you file your return every year with the income tax department, it is kept as a record with them. This shows that you have a source of income and you are financially stable. Mind you it’s not just a record. You can also take it as a supporting document when you wish to avail a loan.
Now you’ll have doubt how will it be of any use to avail a loan?
Let us take an example:
I file my return each year since I was 18, declaring my income from my internship while you have not filed any.
So when today at the age of 22 while I have just started working I want a loan for any reason. How do I prove that I have source of income?
It’s very simple. I’ll take my past income tax return filed any attach it with my current income proof. It will show bankers that I already have created a financial pool to support me. It will be an advantage for me compared to those non-filers of return.
No.2 claiming refund
Now it is not necessary that we all have taxable income after availing of all the benefits like insurance deduction, loan deduction etc. but my employer/banker had deducted tax (TDS) on my salary/interest income. How do I get back tax deducted by them even though I was not liable to pay any tax?
Answer to it is, file your return. Declare all your income and TDS details. If tax deducted is more than the tax you are liable to pay, you will get refund from the department.
No.3 Avoiding Penalty
Now let us talk how income tax department will deal if you don’t file your return.
Any person who does not file his return of income within the assessment year is liable to pay penalty of INR 5000. The amount may seem small but you know this record will always be maintained with the department. So it is not just for one year but even for the coming years you will be put in the bad books (defaulters list) of the department. Also there is interest payable.
No.4 Notice from department for non – filing
Now, you must be having doubt about how will the department come to know that I have not filed my return or levy penalty for non-filing?
Well the simple answer is PAN card. When your employer deducts your TDS they have to deduct, deposit and file the details of TDS with the department along with the PAN Number of person of whom TDS is being deducted. So even if you don’t file the return but your employer is giving details of your taxable income.
You declare it or not but the department already has your details.
No.5: Notice from department for Concealment of Income
We all have seen Hindi movies where there is income tax notice which is not delivered in time and the exaggerated consequences. Why does that happen?
They have not filed their return or filed but not paid the tax thereon. Income tax department can serve a notice if there is reason to believe that the assesse has concealed income or he was to file return but not filed. This is initiated by the department by serving a notice.
Pls can u give us the link where PAN card holders without tax limit are needed to file income tax return or info as my husband says it’s not needed but I don’t know when my income from Fds get under taxable
sir, i submitted itr for ay 15-16, but i forgot to submit for ay14-15 thougt i paid my tax, can i submit itr and how?
g das, mb no 9038601699
My wife is a doctor does part time medical practice and her income from this profession is below tax exemtion limit(0 tax).She is having active PAN card.
Whether filing tax return is compulsory?
I forgot efilig of my itr for AY 201314 CAN I FILE ONLINE HOW IT IS POSSIBLE. PLZ TELL ME
You are having Bank Fixed deposits , they are Tax at source say Rs 25000/ in a year the amount you got / received from your son / daughter , How you get the Refund of Tax deducted . You also failed to submit Form No 15H , 15G whatever may be the case . Though your income is below taxable limit . Unless you filed Income tax Return , you never get the amount deducted at Source . Some days latter on Department may issue notice where from the you get ?
To me always submit your taxation returns showing all the sources of Income . May not be your Income for a particular year is below taxable .
I am handling Two cases , of below non taxable , but notice has been issued to explain the sources of her /his income.
Mr.Sandip: It is not mandatory to file for those two years if your tax liability is nil.
im fillilng non-taxable IT RETURN file from f.y.2010-2011, but for f.y. 2012-2013 & 2013-14 I have not filed my IT RETURN FILE.
so here I want to know , it is mandatory me or not, to file return f.y.12-13 and 13-14, if my income is not taxable in this year.
Seema:- Filing after receiving the notice is distinctly different from filing volu8ntarily. Penalty is to be paid if such a demand comes and not voluntarily.
in f.y. 14-15 i am filling return for F.y.12-13 – penalty of Rs.5000/ will be applicable or not?
Now some school, college ask ITR VI acknowledgement of Parents, in which higher donation are given to the school.
Mr. Arun: Yes you can file the return without any tax liability now.
Thank you so much for inform relating information of Income Tax Return.
Thank you so much for useful information.
Do you need / can you file ROI even if income is lower than threshold of taxation amount?
Good Information, Need to Know by all.
Very good article and very informative one too. Importance of PAN card and consequences. Whole article is worth reading.