1. Income tax returns not filed: What does that mean for me?

Income tax returns not filed: What does that mean for me?

Now only two days are left for filing your income tax return. The computation of total income earned during a financial year, calculation of tax liability on the earned income, the process of filling up the required tax forms and the submission of such forms is the entire process of tax filing.

By: | Updated: August 5, 2017 2:14 PM
Any individual who earns an income from any source during a financial year is required to file tax return.

This is the last day for filing your tax return. The computation of total income earned during a financial year, calculation of tax liability on the earned income, the process of filling up the required tax forms and the submission of such forms is the entire process of tax filing. Any individual who earns an income from any source during a financial year is required to file tax return. This includes income from salary, house or property, capital gains and any other source. If your income is over Rs 2.5 lakh, then it is compulsory for you to file your income tax returns. However, even if it is lower than Rs 2.5 lakh, you should file your returns as the record of it would be helpful in many financial transactions. If you do not file your taxes, you lose out on various benefits and you even incur penalties.

Let us understand what non-filing your tax means:

# Inability Of Claiming A Tax Refund
If you are employed and receive a salary, your employer deducts TDS and then credits your salary. If you make tax-free investments, your taxable income reduces. As such, due to the TDS already deducted by your employer, if your tax liability is lower than the TDS already deducted, you would be eligible for a tax refund. Moreover, if your total income is below Rs.2.5 lakh and TDS has been deducted, you would be eligible for a tax refund. For these or any other cases where you are eligible for a refund, you have to file your taxes. Only if you file your returns, you may get an opportunity to claim a refund.

# Inability To Carry Forward Losses
Losses from business or profession, capital loss, etc. are allowed by the Income Tax Department to be carried forward to the next assessment year. If you do not file your returns, you cannot carry forward any loss suffered by you to the next financial year’s tax calculations.

# Tax Filing Creates A Financial History
If you file your I-T returns, you create a financial history whether your income is taxable or not. This history is important when you are seeking loans or credit from financial institutions. Thus, your ITR forms an important financial document.

Watch this video:

# Non-Filing Might Result In Penal Interest
You would be charged a penalty if you don’t file your taxes if your income is in the taxable limit. Even if TDS has been deducted, tax filing computes your actual tax liability. You can see if the TDS deducted is sufficient or lower than the tax liability. If TDS is lower, you have to pay the extra tax liability. If you do not do so, you would be penalised for short-paying your taxes. You might even be legally prosecuted for tax evasion.

Watch this video:

Filing of your Income Tax Returns is, therefore, important whether or not your income is taxable. The fact that you are earning an income should be the reason enough to file your taxes. However, before you file, keep the following points in mind:
• The tax slabs might change any year. Any change is communicated in the Union Budget.
• Linking of Aadhar Card has been made mandatory when filing taxes.
• File your taxes in the correct form.

The online medium has been facilitated from where you can file your taxes easily. So, file your taxes and reap the benefits.

(The author is CEO, Bankbazaar.com)

  1. PRINCEFREAKASSO PRINCEFREAKASSO
    Aug 1, 2017 at 12:37 am
    What if money which you deposited in your account was the result of money sent by a relative from abroad for hospital payments,or from the of your used car or household furniture etc.What criteria does this come under?
    Reply
    1. S
      Saradaprasad RoyChoudhury
      Jul 30, 2017 at 3:29 pm
      My question is if one does not have Aadhaar càrd how to file e tax return.Because in all the sites they don't allow you to proceed without Aadhaar card number Assam Aadhaar card has still not been issued.so finding difficulty in filing tax returns electronically.. Please advice me in my mail address. Thanks
      Reply
      1. R
        RAMACHANDRA B A
        Jul 30, 2017 at 1:02 pm
        This is only problem to submit e-file return form, because not able to link Aadhar with PAN. Actually my Aadhar is perfect and there no problem with Aadhar card. The Name spelling mentioned in PAN is not matching.2 months back I have given for correction in PAN. Unfortunately I hv received PAN with wrong spelling. 31st is the last date for submit and it will take min one month to correct PAN. what should I do? Please guide me.
        Reply
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          bp sharma
          Jul 30, 2017 at 12:58 pm
          bHAI IN SUBZI BECHNE WALO SE KAUN TAX VASOOL KAREGA, HAI KOI JAWAB
          Reply
          1. S
            s n singh
            Jul 30, 2017 at 12:41 pm
            your opt is not comming pleae help
            Reply
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