In case a person is required to file an income tax return (ITR) but fails to do it, he/she can receive a notice from the income tax department. Also, the tax officer reserves the right to impose a penalty of up to Rs 5,000. It is always better to check the eligibility of one's ITR filing.
To guide the taxpayers in a better way, Tax2win – an income tax filing website- has introduced an eligibility calculator. The calculator helps individuals to evaluate if they are eligible for filing ITR.
“Eligibility for filing ITR depends on various factors and the calculator is designed to ask specific questions and understand the background of the individual before showing results and calculating whether ITR filing is required or not,” Tax2win said in an exclusive interaction with CNBC-TV18.
“The steps include entering the date of birth, annual income and answering a set of income and investment-related questions. The third and final step of entering personal details is optional,” it said.
Here's the link to Tax2win's ITR eligibility calculator - tax-tools/itr-eligibility-checker.
Here are some of the benefits of ITR filing:
• ITR filing makes loan processing easier- Filing the ITR helps individuals when they have to apply for a vehicle loan or house loan. All major banks can ask for a copy of tax returns.
• Helps in getting a visa quickly and in a hassle-free manner - Most embassies and consulates require individuals to furnish copies of tax returns for the past couple of years at the time of the visa application.
• It serves as proof of income and address while claiming tax refunds- Income Tax Return can be used as proof of income and address.
• Credit card processing will be faster for those who file their ITR
• Excess interest on tax payment after the due date can be avoided if the ITR is filed from time to time
• One can carry forward the losses. If the ITR is filed within the due date, one can carry forward the losses to subsequent years, which can be used to set off against the income of subsequent years
So, it is better to check the eligibility of filing ITR and avoid any penalty, if any.
(Edited by : Ajay Vaishnav)