Benefits of Filing Income Tax Return in India | H&R Block
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February 19, 2018

Benefits of Filing Income Tax Return


As children, sitting in the classroom, learning about the square root of Pi, many of us probably wondered, “when will I ever need to know this”?  But, we went through the lessons so that we could pass the exams and move on with our life.  And like most of the information we learned in school, which at that point in time, we thought was useless, probably turned out to be useful later in life.  For individuals falling below the taxable income limit, you probably do not realize that filing your tax return can be beneficial to you also, just like the unknown importance of knowing the square root of Pi.

Income Tax Slabs For FY 2018-19

The Budget 2018 announcement saw no changes being made to the income tax slab rates, as outlined below:

Individual and HUF below 60 years

Income Level (Rs)Tax Rate (%)
Up to 2,50,000Nil
2,50,000 – 5, 00,0005
5,00,000 – 10, 00,00020%
More than 10,00,00030%

[ Read: Income Tax Slab Rates for FY 2018-19 ]

Senior Citizens

Income Level (Rs)Tax Rate % (60yrs-80yrs)Tax Rate % (above 80 yrs)
Up to 2,50,000NilNil
2,50,000 – 5, 00,0005Nil
5,00,000 – 10, 00,00020%20
More than 10,00,00030%30

As an individual falling into the above non-taxable income bracket, you may not see the relevance of filing your tax return since you are in the exempt category.  Moreover, if you have any other investments then your income slab rate might increase, resulting in a higher income bracket and taxes being due.  Conversely, you may also lose out on a tax refund owed to you by not filing your taxes. Additionally, even if you belong to the exempt category (before 80c deductions), filing your tax return can have a beneficial impact in more than one aspect of your life, that you never probably considered.

Top 5 Benefits of Filing Income Tax Return

A filed tax return is an important and valuable document that can help you in the following situations:

Advantages of e-filing of Income Tax Return

  1. Visa Processing – Whether your plans are in the immediate future or not, if you are planning on travelling abroad, you will realise that visa processing requires that you submit your tax returns for the past few years, to the relevant country’s embassy/consulate, including the UK, Europe, Canada and USA.
  2. Loan Processing – Regardless of the type of loan, most banks will ask you to furnish your tax returns for the past few years to understand your financial situation.  Having your tax returns on hand can speed up your loan processing time.
  3. Carry Losses Forward – As per income tax laws you can carry forward losses (capital loss, business loss, etc.) to offset any future income, for up to eight years consecutively.  So, even if you have fallen into the taxable income bracket you can carry forward and adjust your losses against your future taxable income by filing your tax return in time.
  4. Refund – When employed, your employer will deduct TDS on your income.  However, if you have made investments that are tax deductibles, it reduces your taxable income.  So, the TDS deducted can be refunded, but only If you file your taxes.  The same holds true for TDS deducted by any other sources.
  5. Avoid Penalties – While, you may not immediately receive a notice from the tax department for failing to file taxes, you may eventually receive one.  If it turns out you failed to file your returns though you were required to file it, then you might be penalized up to Rs 5,000-10,000 and might face interest payment under section 234A.

So, while in the past you may have avoided filing taxes, this brief lesson in the virtual tax classroom has hopefully enlightened you on the many benefits of filing your tax return.  So, just as you knowing the square root of Pi, may help you one day in Kaun Banega Crorepati, filing your tax returns has its benefits for your future as well.

To get maximum benefits of filing income tax return, file your IT Return with tax experts at H&R Block India


  • Smart and Hassle-free tax filing experience withdedicated tax expert
  • 100% Secure Online Tax Vault to store all your documents
  • Year-round post filing support
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CA Shreya Oturkar
CA Shreya Oturkar
Shreya is a tax advisor at H&R Block (India) with intensive experience in SME taxation and audit. She holds an advanced post graduate qualification in accounting and is highly skilled in financial analysis and reporting. Apart from her professional achievements, Shreya is a talented artist with a flair for free-hand sketching!