4 Reasons to File ITR even if your Income is not Taxable

 
I’m taking the #TaxPledge to file IT returns with the easy Income Tax efiling option from H&R Block at BlogAdda.

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There is less than a month left to file income tax returns (ITR) for last financial year FY 2015-16 (AY 2016-17) and many people are still confused if they should even file their ITR.

Who needs to file ITR Mandatorily?

If your total gross income in FY 2015-16 was more than the taxable limit, you need to file your income tax returns. The limit was as follows:

For people less than 60 Years of age – Rs 2.5 LakhsFor people between 60 to 80 years of age – Rs 3 LakhsFor people above 80 years of age – Rs 5 Lakhs

This income means income before availing any tax deductions from 80C to 80U.

You also need to file your ITR if you are resident have any asset or financial interest in an entity located outside of India.

Why you should file ITR?

Even if you are not in the above category that needs to mandatorily file their return, you should file your returns.

1. Claiming excess Tax Refunds:

There is no other way to claim excess tax refunds than filing ITR. Today TDS deduction has become mandatory across a lot of payments. The employer deducts TDS from salary, bank from FD interest rates, companies from payments to consultants, etc. Due to this you might have paid extra tax. The only way to get it back is file your ITR.

2. Carry forward losses:

Income tax laws allow you to carry forward and adjust some losses like stock market transactions (short term capital gains) against future income. For this you need to file your ITR showing these losses.

3. Loan processing:

If you are hunting for loans from financial institutions, they insist on 2 to 3 years of ITR. ITR is the most authentic proof of income of person and it helps banks understand your financials over the years.

4. Visa Processing:

If you are planning to apply for work or immigration visa, you must have your 2 to 3 years ITR ready. This is especially applicable for US, UK, Canada and other European countries.

The good thing is over the years ITR filing has become easier and more and more information on how to fill forms are available online. Even if you hire a tax preparer it won’t cost much especially in low income cases.

All in all the effort involved in filing tax returns far out weights the advantages and hence go for it!

Filing IT returns - Income Tax efiling Benefits

Under Income Tax Law if your total income exceeds the basic exemption limit: You have to file the Income Tax Return within the prescribed time, i.e. by the due date.

I’m taking the #TaxPledge to file IT returns with the easy Income Tax efiling option from H&R Block at BlogAdda.

What happens if a person does not file the Income Tax Return by the due date?

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You have to Pay Interest on Income Tax Due if you don’t file on time

If you do not file the Income Tax Return by the due date:

You are liable to pay interest at the rate of one percent for every month after the due date till the date of filing the return.
 
If No Tax is due: Interest is calculated on the amount of tax payable after adjustment of pre-paid taxes like advance tax, TDS etc. So, if there is no tax payable on the basis of the Income declared in the Tax Return, there is no liability for the payment of interest.

You don’t get the benefit of Carry Forward of Losses if you don’t file on time

Under income tax law, if you have sustained a Business loss or loss under the head “Capital Gains”, you can carry forward the loss ONLY if you file the Income Tax Return by the due date.

Therefore, if you have sustained a loss, you must file your Income Tax Return in time if you want to carry forward the loss for future adjustment with your Income.

Possibility of Penalty or Prosecution by the Income Tax Department

Say you could not file the Income Tax Return by the due date: To avoid any penalty by the Income Tax Department, you must file your Income Tax Return before the end of the relevant assessment year that is 31st March

Possibility of Penalty and Prosecution: If you do not file your Income Tax Return, the Income Tax Department may impose a penalty, even though the tax payable by you may be Zero.

Further, if a person has failed to file the Income Tax Return and the tax payable after adjustment of advance tax and TDS exceeds limit, he may be prosecuted for imprisonment also. However, this law is used in practice very rarely.

Other reasons for filing the returns of income within time

·         If a refund is due after adjustment of prepaid taxes, it is necessary to file the Income Tax Return to get the refund from the Income Tax Department.

·         Bank Loans: Further, the return is a declaration of your income and it will be extremely helpful when you are applying for a loan from bank. Before granting the loan, banks want to know your financial capacity and your income details as shown by you in income tax returns. 

·         Visas of foreign countries: Many countries want to know if you are financially sound before they issue you a visa and for this purpose they will rely on your income tax returns.

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.

When people ask me what I do - Life of Software Engineer

When people ask me what I do, and I say I’m a “Software Developer”, they seem fairly impressed yet not entirely sure what it means. Even my parents still can’t quite grasp what it is I do. They know I’m good with computers and also useful for any technical issues they have (a hazard of the job, much like a doctor or car mechanic I imagine). So for both their sake and yours I’ll attempt to describe what happens in a day in the life of a software developer. 

7.30am - Wake-up

First cup of tea of the day, the start of many… 

8.30am - Head to work

There you go; start the journey to office, bearing the traffic for next 1- 1.5 hours.

10.00am – Arrive at work

Make a cup of tea and head to my desk. Switch on my PC, log in and then check if any urgent emails need dealing with.

10.30am – Start work for the day

We follow a SCRUM methodology and work in two week sprints. What this essentially means is features that are to be added to the website are broken down into lots of small tasks that can be released to the live environment every three weeks. We spend one gathering the requirements, understanding the scope and then the final week is spent testing the changes, fixing any bugs that have been found and then getting ready for the next three week sprint

11.30am – Status Call

Team meeting starts; give updates to concerned people. Blabber about the things you did. If not done; explain why, listen to the lecture from the leads and manager.

1pm – Lunch

Some free time…

 

2pm – Back to work

Back to more of the same – cup of tea and work to accomplish the task that I’m working on in the sprint or perhaps testing the performance of the builds. Time goes really quickly and so many things left to be done!!

4:30pm – Evening Snacks

Break… Certainly, a needed one!! Back to my desk after half an hour.

7pm – Home time

Yay..!! Another 2 hours travel to home. Traffic jams, dust, rains, irritating co-passengers all to give company!!

9:30pm – Sync up meetings

Attend the Sync up calls with onsite team. 

11.30pm – Bed Time

Go to bed with the hope that some things/people will change next day that you will not be bored with job, that something good will happen with you too.

It’s the weekends where every person spend his/her time differently. Over the years, I have realised that one must have some other passion as a hobby which he/she can pursue in spare time. Be it photography, biking, partying, hang out with friends, camping, hiking, trekking etc. as these all options are available nearby the place I live. This is the only way person will not be bored with his job. I prefer sleeping and get some rest on weekends though…

Monsoon Rains - A Thought

The monsoon is generally referred to the season of rain. In India, it starts in the middle of June and continues after August. It brings rains after the heat of the sun. The season gives respite from the scorching heat of the summer. It brings life to the plants and trees. Ponds, rivers and streams are filled to the full and the sky remains mostly cloudy.

The sky presents a very beautiful scene. The clouds of different shades move in the sky and look very nice. The trees gets covered with new leaves. New grass grows in the dry fields and they look like turf of green velvet. When it drizzles for several days, the roads, however, become muddy. Rivers, ponds and ditches are filled with water.

Greenery returns to the garden. The season holds particular importance for the agriculturists. It is a blessing for them, as they depend on rain for farming. They are happy to see the cloud-laden sky. They take their plough and oxen and go out of their houses. All these present an enchanting sight.

We all depend on food for subsistence. Rain helps cultivation of various crops. The farmer is rewarded for his hard-work only when he sells the crops and realizes the money. Failure of rain causes famine and many people die.

Rainfall is also important for the overall economic growth of a country. The nation earns huge amount of foreign-exchange earnings by selling the surplus food-grains and fruits are exported.

While it gives relief to the world suffering from heat, it also causes much inconvenience. People are confined to their houses. The roads become muddy and it becomes difficult to walk on them. The rivers often overflow their bans and create much havoc. The walls of mud houses collapse and cause much damage to the household articles.
Rain is great boon to the peasants. Without rain crops would not grow and agriculturists would be put too much loss. In India, agriculturists have to depend mainly on rain for cultivation and for the raising of crops on their lands.

During monsoon season, people also face many difficulties. However, heavy down-pours choke the drains of the cities. The drainage system in our country is not adequate to drain away the rain-water completely. The ditches besides the roads start overflowing.
Water logging causes severe traffic jam in most of the cities. People are not able to move out due to water logging.
The rivers and lakes overflow their banks, and many villages are flooded. The condition of flood in slum areas badly affects the life of poor people.
Land transport and communication system is suspended in many places. In such conditions, small boats become the means of transportation at villages.

Excessive rainfall is injurious to crops. The prices of food-stuffs go up during the rainy season.
Like everything in life, timely monsoon is most welcome. However, excessive or inadequate rainfall leads to scarcity and famine. Adequate rainfall during the sowing seasons ensures good harvest. If it is very late, plants and trees are badly affected. The soil gets too dry and cracks up in the heat. On the other hand, if the monsoon continues for too long, it leads to various diseases. In such cases the joys of autumn are also spoiled.

Mr. Nags - The Man Who Knows Secrets Of RCB Team

#Peas.... Are you a devout follower of Royal Challengers Bangalore and want some scoop on the team members? Look no further. Our own Bengalurean Mr Nags has some of the juiciest gossip on theteam members in the RCB Insider. 

Want to hear how the handsome Ab de Villiers proposed to his girlfriend? Ever heard Gayle and team owner Vijay Mallya speak in Kannada? Well, here is Mr Nags showing glimpses of their lives off the field. But who is this Mr Nags – the RCB Insider who speaks like a typical Bengalurean Kannadiga? 

Don’t rack your brains much, it is our very own Danish Sait – the infamous prankster on FM Fever 104. The RCB team over the last two weeks has been uploading videos of Mr Nags crashing into RCB shoots and its parties on its website.

Speaking about what prompted him to be the character he is, Danish says, “Mr. Nags is like a stereotypical representation of Bengalurean. 

The audiences can therefore relate to him since the accent, mannerisms are similar, therefore relatability is high. He is in a bubble of his own, not noticing that the world thinks of him as an idiot.”

His grandfather Aziz Sait was a Congress man from the Mysuru. As a child, he observed the numerous visitors who thronged his house every day to interact with the family.

Soon, he started mimicking the different voices and accents he heard and even before he knew it, he was in a profession where he could use this talent.

While explaining the character that he essays, the popular RJ says the intention is to create humour content for the audience while simultaneously gathering scoop from the team.  

Denying that he is not a mascot for the team, he says he just plays a character that entertains people and connects them with the team.

“The RCB Insider videos have got a good response and people have liked the content. Actually the name Nags was a cooler version of Nagraj (one of the several names he uses in his pranks). People have often said that I’m a brand ambassador for Kannada since I regularly prank in the local language.”

The episode with Ab de Villiers where the cricketer shares his experience of proposing to his wife, Danielle, is his favourite because it captures both a softer romantic side of the South African as well as his humoristic side.

#PlayBold #RCBInsider #Peas #MrNags