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Benefits of filing income tax returns

Income Tax - Direct Tax Code - DTC - By: - Sumit Arora - Dated:- 29-8-2015 - Anil Kumar started working for an information technology major a year back. During the induction process, Kumar and his peers were told to save up and invest to save on tax outgo. With no liability behind him, Kumar was easily able to save ₹ 87,000 over the last one year with some guidance from his father. His annual salary is ₹ 3.50 lakh. As the basic exemption limit for financial year 2014-15 was ₹ 2 .....

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nt Fund account had collected ₹ 15,000. Thus, Kumar saved a total of ₹ 102,000 in tax-saving instruments. After saving on his taxable pay, Kumar thought there was no need for him to file income tax returns (ITR) this July. But that is not true. Anyone earning a taxable salary, exceeding the basic exemption limit has to compulsorily file ITR even if the tax liability was reduced to zero post deductions. Only those who earn up to or less than the basic exemption limit of ₹ 2.50 l .....

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returns. State Bank of India asks vehicle loan applicants for the latest salary-slip showing all deductions, TDS certificate / Form 16, copy of ITR for last two financial years. Additionally, showing a copy of ITR receipts also comes handy if your loan application is rejected or if you are not getting as much loan as you want. Even while applying for a housing loan, many banks ask for Form 16 or even ITR receipts, says chartered accountant Arvind Rao. To claim refund If you have a refund due fr .....

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urns, you will not be able to carry forward capital losses (short-term or long-term), if any, in a financial year to be adjusted against capital gains made in the subsequent years. A long-term capital loss in one year can be carried forward for eight consecutive years immediately succeeding the year in which the loss is incurred. Long-term capital loss can be adjusted only against a long-term capital gain in the year. But short-term capital loss (STCL) can be adjusted against long- as well as sh .....

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ce of income in India thus, strengthening your case as someone who will not leave the country for good but will return, explains Rao. When traveling to foreign countries, whether on a business or leisure trip, experts suggest you always carry income-related proofs along - salary slip, Form 16 and ITR receipts. Consulates specify these requirements in most cases. Buying a high life cover Buying life cover of ₹ 50 lakh or ₹ 1 crore has become commonplace. However, these covers are avai .....

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and need to fill a government tender or two for the same, they will need to show their tax return receipts of the previous five years. This again, is to show your financial status and whether you can support the payment obligation or not. However, this is no strict rule. It may vary depending on the internal rules of the government department. Even the number of ITRs required can vary. Self-employed Businessmen, consultants and partners of firms do not get Form 16. Hence, ITR receipts become an .....

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tion technology major a year back. During the induction process, Kumar and his peers were told to save up and invest to save on tax outgo. With no liability behind him, Kumar was easily able to save ₹ 87,000 over the last one year with some guidance from his father. His annual salary is ₹ 3.50 lakh. As the basic exemption limit for financial year 2014-15 was ₹ 2.50 lakh, Kumar's taxable income stood at ₹ 1 lakh. Kumar's father advised him to invest ₹ 3,000 a .....

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After saving on his taxable pay, Kumar thought there was no need for him to file income tax returns (ITR) this July. But that is not true. Anyone earning a taxable salary, exceeding the basic exemption limit has to compulsorily file ITR even if the tax liability was reduced to zero post deductions. Only those who earn up to or less than the basic exemption limit of ₹ 2.50 lakh need not file tax return. And there are advantages of doing so. An ITR receipt is an important document as it is m .....

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ificate / Form 16, copy of ITR for last two financial years. Additionally, showing a copy of ITR receipts also comes handy if your loan application is rejected or if you are not getting as much loan as you want. Even while applying for a housing loan, many banks ask for Form 16 or even ITR receipts, says chartered accountant Arvind Rao. To claim refund If you have a refund due from the Income Tax Department, you will have to file returns, without which you will have to forgo the refund. Some tax .....

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e adjusted against capital gains made in the subsequent years. A long-term capital loss in one year can be carried forward for eight consecutive years immediately succeeding the year in which the loss is incurred. Long-term capital loss can be adjusted only against a long-term capital gain in the year. But short-term capital loss (STCL) can be adjusted against long- as well as short-term capital gains. Visa processing If you are traveling overseas, foreign consulates ask you to furnish ITR recei .....

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