In a press conference held in May 2020, the government announced that the deadline for filing income tax return (ITR) for the FY 2019-20 is extended from July 31, 2020, to November 30, 2020.
The Budget 2020 has given us a new income tax slabs which have given taxpayers the option to pay their taxes according to the latest tax slabs. Those having an income lesser than Rs.2.50 lacs are exempt from tax and senior citizens having an income up to Rs.5 lacs are exempt from tax.
However, it is recommended that though you are exempt from paying taxes, you must file your ITRs. There are many benefits that can be availed if you do so:
- Claim Refunds: In case there is a TDS on any investment, you have to file your ITR in order to claim a refund.
- Document Processing: When you apply for a loan, the loan amount and your eligibility can be evaluated through your ITRs
- Carry-forward Your loss: You can carry forward the losses as according to the IT rules, these losses can be set off against the capital gains if you have filed your ITR in that financial year. If you wish to set off the losses, you must file your ITRs.
- Acts as proof of income in Compensation cases: Though as per the Motor Vehicles Act, it is not compulsory to give ITRs for compensation cases related to disability or accidental death, there is a need to provide an ITR when it comes to self-employed people which serves as proof of income.
- Citizen abiding by law: It is always advised to abide by the law and keep the department of income tax informed regarding your income/taxability.
Thus, if even not applicable, you must fill the income tax.