Reasons to file Income Tax Return
Whether income tax return should be filed or not depends on your income level. When total income is within the minimum exemption limit, it’s not compulsory to file income tax return. The minimum exemption limit is Rs 2.5 lakh if you are less than 60 years old. For those who between 60 and 80 years of age, income is exempt up to Rs 3 lakh. And for those who are 80 years and above Rs 5 lakh is the exemption.
File income tax return to explain your expenses and Investment
The government tracks investments and expenses of PAN holders via AIR (Annual Information Report) submitted by banks and financial institutions. Explaining the source of a large investment or expense made via exempt income, may be easier when such income is reported in your tax return.
File income tax return if you wants to claim refund
If you have no taxable income but your TDS has been deducted either by Banks on FDR’s interest / tenants on Rent, than you can claim refund only by filing Income tax return
File income tax return if you have foreign Assets /Banks accounts
Income tax Return filing is mandatory in case you have foreign assets or foreign bank accounts even if you have less than taxable income or no income at all.
File income tax return if you are trading in shares
Income tax return has to be filed if you are trading in shares and are incurring losses. If you will file the return , losses incurred in this year can be setoff against the profit to be incurred in future. In case losses are not fully adjusted they can be carried forward for 8 years and adjusted against capital gains in future.
File income tax return to declare exempt income
Sometimes you may be earning exempt income on which no tax is payable , like agriculture income, dividend income etc. It is always better to file income tax return even if you have no taxable income to declare this exempt income.
File income tax return to claim deductions
sometimes you may be earning taxable income e.g Rs 275000. (more than Rs 250000) . If you have paid insurance premium , tuition fees of children etc of Rs 30000 than your taxable income will reduce below Rs 250000 and you need not to pay any tax. Thus you can claim deductions by filing Income Tax return.
File income tax return if you are planning to apply for loan
Banks always ask for last three years income tax return before granting you a loan or credit card
File income tax return if you are planning to apply for Visa
Visa authorities’ may ask for copies of your income tax return filed with tax authorities.
Contact for filing income tax return :CA satbir singh , email@example.com , 9872233989
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