Not Filed Income Tax Return. What are the Great Personal benefits you will be loosing? Detailed Analysis.

Govt of India announced extension of Income Tax Return Filing to 31 Aug 2018. If you are not able to file upto 31 Jul 2018, you have a great chance to file the Return. Govt announced that 68 Million people filed return in 2017-2018 as against 54 million in 2016-2017. What are those benefits which you will be loosing, if you are not filing your income tax return. As per Govt rules, it is mandatory to file Income Tax Return, if your income is more than 2,50,000 INR. You can File Income Tax Return online by Visiting Income Tax Department Website. It is very easy and any individual can file with little knowledge.  Though, there are many associated social and legal implications by evading tax filing, but at personal front also you are loosing many benefits.

1. Loan Application :- When you are applying for any loan like vehicle loan or home loan, all leading banks ask for ITR. It is mandatory to provide ITR copy, else your loan might not be approved in many cases.  To ensure smooth processing of your loan application, never miss ITR filing. It can be very helpful in calculation of your loan limit and can also serve as a purpose for income proof.

2. Against Losses Adjustment :- If you are filing your income tax, it is recorded in your ITR about the capital gains. In case the losses are incurred, these can be adjusted against capital gains made in the subsequent years. Therefore, if you are not filing income tax return, you may not be eligible for any exemption against your tax liability in subsequent years.

3. To Get Refunds :- If you are paying advance tax, then you must file tax return to get refund, if any?. Even if, you are delayed in filing the return, you will end up loosing your refund. Therefore, Tax return is necessary.

4. Visa Processing :- If you are travelling overseas,. during visa processing, you may be asked for ITRs to show your income proof and issue you the visa. This helps interviewing person to ensure that you have an income source in India and you are not leaving country forever or you will not be liability in new country. 

5. Buying an Insurance :- If you are buying a term insurance of 50 Lakhs or more, ITR is mandatory. Without this document the application will not be processed. 

6. Avoid Penalties :- If you are in tax slabs then as an individual, you can be penalized by government authorities with hefty amount if found evading the taxes. 

7. Applying for Any Tender :- To participate in any tender, it is must to attach your ITRs. This solve many issues and makes you eligible for participating in tender process.

8. Social Obligation :- As a responsible citizen, it is mandatory to file your tax returns. Govt, spending are from taxes only. If we are not paying taxes, it will have a bad social impact. 

9. Financial Document Proof :- It is very important financial document and can be very useful in many cases. It can be handy at many occasions when you are looking to show up your income. 

Therefore, please file your Return before 31 Aug 2018 for this year. 

Cheers. Happy Reading.