This article is particularly for the people who skip filing Income Tax Returns ( ITR) because they think that they don’t come under tax slab so they don’t need to file. True that it is not mandatory to file ITR if you are not coming under the tax slab. But there are few benefits of filing Income Tax Returns
| Total Income | Income Tax Rate |
| Upto 2.5 Lakh | Nil |
| Rs 2,50,001 – 5,00,000 lakh | 5% |
| Rs 5,00,001 – 7,50,000 lakh | 10% |
| Rs 7,50,001 – 10,00,000 lakh | 15% |
| Rs 10,00,001 – 12,50,000 lakh | 20% |
| Rs 12,50,001 – 15,00,000 lakh | 25% |
| Above Rs 15,00,000 | 30% |
If you are a corporate employee your company will give your form-16 which is an income proof, but if you are a freelancer or a self-employed you don’t get a form-16.
So when you file ITR online you will get an acknowledgment called ITR-V (Income Tax Return – Verified) which is considered to be proof of income.
Because that document contains your total income and tax calculation that is acknowledged and sealed by the income tax department. So ITR-V is considered as authentic proof for your income.
Loan approval becomes easy: ITR-V act as your income proof, that becomes easy for the loan officer to process your loan.
To claim tax refund: Sometimes you get a tax refund like if you have put a fixed deposit or any investment plan where TDS( Tax Deducted at Source ) is deducted as per rules, it will be refunded when your tax liability is zero. It is very helpful for retired persons.
Credit card approval: When you have your ITR filed it is easy to get a credit card or any short term loan from the bank.
Visa approvals: Few countries like UK/US and Europe need your ITR history for approving your visa even for a leisure trip.
All financial institutions have made it mandatory to avail ITR before processing any loan or credit. It is good to file an ITR and be a responsible citizen. So, it is wise to create your ITR history and be credible.
Very useful n informative article. I am currently going thru the situation of consequences for not filing the IT returns n getting it done thru the CA.