Filing returns is a sign you are responsible for. The government mandates that individuals who earn a specified amount (500000 Rs.) of annual income must file a tax return within a pre-determined due date. The tax as calculated must be paid by the individual. Failure to pay tax will invite penalties from the Income Tax Department.
It is mandatory for individuals, NRIs, partnership firms, LLPs, Companies, Trust to file income tax returns each year. Individuals and NRIs are required to file income tax return, if their income exceeds the exemption limit. Partnership firms are required income tax return - irrespective of amount of income or loss. All companies are mandatorily required to file income tax return. Finally, it is mandatory for most types of trust to file income tax every year, while some types of trusts are required to file return of income if its gross total income exceeds the exemption limit.
It also helps you establish a good record with the I-T Department. Paying your income tax and filing tax returns provides on time is a must for all individuals. ... Here are few other scenarios where filing income tax return becomes necessary for tax payers:
filing returns are also important for VISA processing.
immediate registration of immovable properties is possible if you have filed your tax returns on time.
Unless you file your return regularly, banks may not issue a credit card to you.
filing your tax return is one way of having a legitimate proof of your income, and it helps you establish a good record with the Income Tax Department.