Updated: Jun 11, 2021
What is Income tax
Government of India in order to generate revenue collect different type of taxes. If a person pay tax directly to government its is known as direct tax. one of its kind is income tax.
Income-tax Act, 1961 came into existence w.e.f. 1-4-1962.
Benefits of Filing Income Tax Return
It act as a Income Proof.
Quick Loan Approvals from bank.
Helps in processing of Visa Application in case of foreign travel.
Act as Address proof.
Carry forward of Loss Like Home Loan Interest, Capital Market Losses, Business Loss.
Avoid penalties and future Litigations related to income.
Tax Refund by claiming deduction if any were not submitted to employer.
Important aspects for filing income tax return
Where income exceeds basic exemption limit.
If your holding foreign assets.
Individual - paying electricity bill above Rs 1 lakh or deposited more than Rs 1 crore in one or more bank accounts or spent more than Rs 2 lakhs on overseas travel during financial year.
Recent government moves with respect to income tax
Launch of new portal www.incometax.gov.in
Lots of SFT Reporting
Prefilled data is received from various departments like GST.
Profit in Stock market transactions are reflected in Form 26AS