Markets have corrected, it's the best time to Invest in mutual funds
You are just starting out and your total income falls below the taxable limit, but would like to keep a record. There are several instances where income tax serves as a proof, say when you are applying for visa or while getting your passport made.
You were filing your income tax returns for many years and fell into the ‘below taxable limit’ this year. This is to continue maintaining a record and also preventative measure in the event of a scrutiny from the Income Tax Department.
Your total income without taking deductions into account could be above the taxable limit, but with deductions might be below the minimum exemption limit of Rs.2,50,000. If you paid more in taxes than you needed to, you must file an income tax return to claim a refund.
Filing income tax returns is mandatory for those whose total income is more than Rs.2,50,000. We recommend that you file your income tax return, even though it is not mandatory if total income isn’t over Rs.2,50,000.
Filing a nil return is no different from filing a regular income tax return.
Click here to read our guide to e-filing.
I did not file my income tax returns for the last 3 years. I have applied for visa now and have been asked to furnish my income tax return. What do I do?
You must compute the tax liability, pay any pending taxes for that year and give a written submission to the Assessing Officer in your ward.