As per Income tax laws, it is mandatory to file Income tax returns if you meet any of the following conditions:
If your total income during the Financial year is more than Rs.2.5 lakhs.
If you deposit Rs.1 crore or more during the financial year in your current accounts.
If you spend more than Rs.2 lakhs on foreign travel by anyone.
If the total of your electricity bill during the financial year is more than Rs.1 lakhs.
If you are a beneficial owner or beneficiary of any asset located outside India or have signing authority outside India
If you are a firm or a company.
Filing of Income tax returns even when you are not required to has following advantages :
Its easier to get a loan or credit card. Tax return is a mandatory document these days in almost all the banks if you are applying for a loan or credit card.
In case of losses, you can adjust the loss against next year profits if you file returns on time. This ultimately leads to tax savings.
It helps the government in determining where our country is headed.
Some times TDS is deducted for providing certain services. So to get the refund it becomes a necessity to file tax returns.
Not filing tax returns on time can result in interest & penalties which starts from Rs.500/- and it may extend up to Rs.10,000/- So make sure you file your tax returns on time. Professionals can refer Section 139(1) of Income tax act to get the bare act info. Stay tuned for more!
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