Income Tax Filing Even If You Don't Pay Tax

As an individual it is a very good thing as well as you will have a great advantage if you file your taxes I.e. if you file your returns even if you don't pay any tax. This is because when you are taking any loans whether home or personal loan they ask for last 3 years of returns and that's why it is good to file your returns.

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Now not only for your loans but it is a method of giving your annual salary total to the government and thus any transaction which you do for the whole year can be shown and you can come clean. What happens is that, if by chance your PAN is leaked and someone using your PAN to show any fraudant transactions, then it is upto you to pay that tax. So to keep yourself clean of any of these fraudant transactions you can file your returns and tell the government that this is what you have earned for the whole year.

So when your salary is quite less, you can file the NIL returns that means you are exempt from paying any tax to the government and in that way telling the government about your total yearly income. But keep in mind that it is not mandatory to file your returns if your tax liability is zero, but it is good for your future if you file your returns today.

The money you will be getting after few years might be very much than what you are earning today. So keep yourself clean from the starting and thus do not go for any fraudant activities. There are some visa application are also needed your past ITR and thus filing the nil returns are good for those also. Also if you had losses in the stock market than you can carry forward that loss to the next year or the year when you are in taxable income.