Why Income Tax return need to file?
Income Tax return filling is legal requirement in India as per Income tax Act 1961 The following taxpayers are required to file a mandatory income tax return are listed below:
Advantages of Filling Income tax return
Legal Requirement by Income Tax Act 1961 - for individual & HUF -If gross total income Exceeding 2,50,000/-then shall have to file return
For firm & companies- even if no income return filing mandatory
Claiming refund
Carry-forward of losses
Establishing income proof in compensation cases
Helps the bank loan documentation process easier
Credit Card Processing
For a hassle-free visa application procedure
Makes life easier for freelancers and Professional
Disadvantages of a Non Filling Income tax return
Losses cannot be carried forward.
Deductions under Chapter - VI A cannot be claim
Interest under Section 234
Loss on refund of Taxes (Financial loss)
Best judgment assessment (Assessment under section 144):
Penalty for Concealment of Income
Prosecution for Failure to Furnish Return of Income u/s 276CC
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Documents Required For Income Tax Return Individual Resident