There is only one day left to file an income tax return, in which case if you are not filing a return because the income is not earnable, then you must read its benefits.
Income tax return filing: The last date for filing income tax returns is 31st December. If you have not yet submitted your return, do so. According to the Income Tax Act, all people earning more than Rs 2.5 lakh per annum must file a return. You may have to pay a fine if you do not submit the return before the due date. People from different income groups have to pay different fines.
But the real question is if your income is not taxable, meaning no tax is deducted or refunded on your income, will you file an income tax return?
In fact yes, if you are filing a tax return on your annual income, even if no tax is deducted or no refund is available, you will still get a lot of benefits. Get your ITR can bring you a lot of benefits in many cases Can
What are the benefits of filing ITR?
No need to pay fines
First, you do not have to pay the prescribed penalty for non-compliance with ITR or late payment. Your records are clear to the income tax department. At the same time, you are protected from the hassle of legal issues. Under Section 234F of the Income Tax Act, if your annual income is less than Rs 5 lakh, you will have to pay a fine of Rs 10,000 for income of Rs 1,000 and above. It is your responsibility to file your tax return in such a situation.
Will be saved from excess interest
In case of non-filing of ITR, the interest on the return on you increases by 1% per month, in which case the amount of interest will increase further if you do not file the ITR.
If you want to claim a refund
If TDS (tax deducted) is deducted on any of your investments, you will need to meet the ITRT to claim a refund. That means if you want a refund, fill out the ITRT.
Assistance in processing credit and loans
ITR receipt is effective in this national event. This can help if you want to apply for a personal loan at some point in the future. Banks and financial institutions prefer ITR receipts when deciding on your credit. In that case, if you have filed your return, you will not have any difficulty in taking it.
Loss of credit card and insurance cover
In case of non-filing of ITR, the banking institution may reject your credit card application. At the same time, if you want to buy a more covered insurance policy, it may be helpful to submit an ITR. If you do not have such proof, your insurance company may refuse to give you a high-cover policy.