Are you, like many others, thinking of not filing your taxes because you haven't earned enough to be in a tax bracket? Well, you should file your taxes anyway. We tell you why.
To begin with, the last date of filing income tax is July 31. The lowest tax bracket in India is for people who earn Rs 2.5 lakh a year or more. However, does this mean you don't have to file taxes if you earn below this? Well, yes. But you must file taxes anyway.
ClearTax.in said, "I often get this query from many tax payers - “Should I e-file without having taxable income?”
Filing zero tax returns, i.e. filing returns when you are not eligible for taxation, is important for the following reasons:
1. Tax returns are required while applying for any kind of loans as it serves as proof for your past finances.
2. Tax returns documents help you get a visa to visit another country.
3. If your company cut a higher 'tax deductible at source' or you are eligible for a refund from the income tax office, then you must file your returns to get that money back.
Nearly 25% of individuals who filed tax returns during the period 2015-16 did not have taxable income. They did it anyway to get above mentioned benefits.
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