Biggest Mistake for not filing Income Tax Return
My Tax has been deducted by my Employer / Bank therefore I am not required to File Income Tax Return
Answer
Your Employer Deduct TDS ( Tax Deducted at Source ) and Not Tax .
Deductions of TDS by your employer means that you have earned income and Income Tax department get Information about the source from where you have earned income and how much income has been earned.
When you will file the Income Tax Return , you will
1 ) adjust this TDS from your Tax Payable or
2) You can claim refund of TDS if you have no Tax Payable
Why is return filing mandatory, even though all my taxes and interests have been paid and there is no refund due to me?
Amounts paid as advance tax and withheld in the form of TDS or collected in the form of TCS will take the character of your tax due only on completion of self-assessment of your income. This self-assessment is intimated to the Department by way of filing of the return of income. Only then the Government assumes rights over the taxes paid by you. Filing of return is critical for this process and, hence, has been made mandatory. Failure will attract levy of penalty.
I should not file return of income because I do not have any positive income or have Loss?
If you have sustained a loss in the financial year, which you propose to carry forward to the subsequent year for adjustment against subsequent year(s) positive income, you must make a claim of loss by filing your return before the due date.
What are the benefits of filing my return of income?
Filing of return is your duty and earns for you the dignity of consciously contributing to the development of the nation. Apart from this, your income-tax returns validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, etc.