Article
How long can you go without filing Income Tax Return?
As a law-abiding citizen, you file your Income Tax Return very diligently every year. Every citizen is required to file their IT Return the tax filing due date, which is usually the 31st day of the month of July. If you have tax liability, then you should file your Income Tax Return, otherwise you can get a notice from the Income Tax Department. Moreover, if you do not have any tax liability then, it is not mandatory for you to file ITR, but we suggest you should, as Income Tax Return is one of the major proofs of your Income in India. Here are some major benefits of filing Income Tax Return.
- By filing Income Tax Return, a taxpayer can claim Tax Refund for the extra tax paid to the Government in the form of Advance Tax or Self-Assessment Tax.
- The Income Tax Rules allow the carry-forward of losses to set them off against the Capital Gains, only to those taxpayers who file their Income Tax Return well within the relevant Financial Year. There are times when you incurred losses in a Financial Year, in such situations you cannot shy-away from filing Income Tax Return, in such a case you should file ITR, so that you can carry-forward losses you have incurred to set it off against the income of the subsequent years.
- While applying for home loan or visa, the authorities ask for the copy of your previous year’s ITR. So, if you are planning to apply for loan or visa, then you are supposed to file your Income Tax Return.
No matter what is the source of Income, filing Income Tax Return for every the relevant financial years is always a good practice.
