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 of 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.
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 2,50,000||Nil|
|2,50,000 – 5, 00,000||5|
|5,00,000 – 10, 00,000||20%|
|More than 10,00,000||30%|
[ Read: Income Tax Slab Rates for FY 2017-18 ]
|Income Level (Rs)||Tax Rate % (60yrs-80yrs)||Tax Rate % (above 80 yrs)|
|Up to 2,50,000||Nil||Nil|
|2,50,000 – 5, 00,000||5||Nil|
|5,00,000 – 10, 00,000||20%||20|
|More than 10,00,000||30%||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 fling 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.
A filed tax return is an important and valuable document that can help you in the following situations:
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.