The finance minister recently indicated that salaried employees earning below Rs. 5 lakh and not having any other sources of income would be exempt from filing the income-tax returns.
The due date for filing tax returns by individuals depends on the category one belongs to. In case of individuals whose accounts are required to be compulsorily audited, the return is to be filed by 30 September. For the rest, July 31 is the due date.
Benefits of tax filing
Filing of tax returns ensures that the individual is compliant with the tax laws. There are other benefits also. By staying within the time lines, the individual would be able to manage his financial affairs effectively. For instance:
- The acknowledgment for filing the tax returns would come in handy in case a visa is required to be obtained; the document would serve as proof of the financial soundness of the individual.
- If a loan is required to be obtained from a financial institution, the tax returns would be required to prove the ability of the person to repay the loan
- Excess taxes paid by an individual either by way of tax deduction or advance/self-assessment tax can be refunded only by filing tax returns.
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