Individuals who have an annual revenue beyond the basic Rs 2.5 lakh exemption limit shall obligatorily report their returns on income tax. In cases in which the gross income exceeds the above threshold, an ITR has to be filed even though the tax provision is not in force.
‘Requirements for taxation’ is a process in which taxpayers record their taxable income details of their income, deductions, exemptions and taxes. The filing of income tax returns is compulsory in respect of taxes with respect to Section 80c, Section 80D, etc and other exemptions that could potentially result in a zero-input taxable income, such as exemption from long-term capital gains. Opt IT Return Filing.
In addition to ensuring that you are tax compliant, ITR filing also includes the following advantages:
1. ITR file removes fines
As of FY 2017-2018, the Department of Income Tax imposes on individuals who do not send a tax return the Rs 10,000 penalty under section 234F. In due course, ITR filing eliminates excessive fines. Even if your annual income does not exceed Rs 5 lakh, as a law-abiding citizen it is your duty to file your tax returns.
2. Receipt from ITR is an extremely valuable document
ITR receipts need to be properly preserved since they are very valuable evidence of your income and tax payment. It is also more extensive than Form 16. It includes your net income and your revenue from other sources.
3. ITR receipt is a useful document to process bank loans without problems
Over the last three years, most banks and NBFCs request high-value ITR loans receipts like home and motor loans. The lenders regard ITR as the most genuine revenue document. Therefore if you intend to make use of home or auto loans in the future, you can annually produce an income tax return.
4. Visa care
Embassies in advanced countries such as the USA, the UK, Canada and Australia, request that the ITR receipt of your visa application be processed from previous years. They are very clear about your tax enforcement, and you are therefore requested to include ITR receipts. This helps them to measure your earnings and ensure that you take care of your trip expenses.
In several cases, the supply of ITR on time helps when ensuring compliance with taxes. For fiscal 2018-19, the e-filing season commenced and the deadline for filing is 31 July 2019. Be a person who is responsible and file taxes early to prevent problems at the last minute.
For 2019-20 it is compulsory to send an ITR if:
The taxable income of the person reaches the maximum taxable sum. Rs 3 lakhs for seniors (aged 60 or older but under 80 years), Rs 5 lakhs (aged 80 or older) and Rs 2.5 lakhs for other senior citizens are the fundamental exemption cap for FY 2019-20;
The individual must demand a refund for income tax;
The person qualifies in FY 2019-20 as an ordinary resident and has foreign assets that are explicitly to be registered in the ITR. These include international bank accounts, foreign real estate, financial properties, authority to sign, etc.;
The person made unique transactions such as a) payment of electricity charges above Rs 1 lakh during the YF (b) having deposited more than Rs 1 crore in one or more current accounts during the Year or (c). You can follow this advantages before paying itr manually or online for your salary or income you are getting. All these are the advantages for the year 2020.