Just 4 percent Indians are the tax payers. We can say that 96 percent Indians does not pay Income tax and most of them does not file ITR too. You don’t come under the income tax slab is one thing but you haven’t file your ITR yet is another one. Definitely if you are not under the income tax slab so you are not bound to file ITR, but you must file ITR though your income is nil. Yes you may be a student, unemployed, low wage worker, house wife or anyone lives in India. To file ITR is no doubt good for the nation’s wealth but it is more beneficial for your own financial profile. It will help you in many things financially apart from the income tax prove.
I can even say that every student should file ITR. There are number of benefits you can count down for your carrier, even when you are not earning but you can show your pocket money in it. And you don’t need to have anything but your saving account is enough along with your pan card. Although a new rule has been enforced in which AADHAAR is must to file ITR since 1st of July. Without AADHAAR your pan will also not be valid. It was mandatory before but now is compulsory for ITR. Though 112 Crores AADHAAR has been issued but if you still don’t have, must run for it.
In Short a student needs just 3 things to file ITR
Saving account
Pan card and
AADHAAR
ITR will help to get visa
Being a student if you applied for visa for any country ITR will help you a lot and will ease your application process. Even if you are applying for work visa, it will more helpful. Most of the students like to work along with studies in foreign. It might for extra pocket money or support for the study or family or just for the experience your ITR may be a proof of your reliability. Even many of the countries VISA requirement mandates copy of ITR of past 2 to 3 years. Either you have to visit for business purpose or in case of tourism the host country will like to check your financial status through your ITR. Some of the countries it is mandatory but it is compulsory in many nations. So in case you are planning holiday abroad in next year do file your ITR.
For Education Loan or Concession Loan
Trust which are formed to help deserving student to pursue higher studies by giving scholarships or sponsoring their studies always cross check that benefit is passed to deserving students whose parents are not able to afford higher studies. To determine the income and eligibility for loan ITR of parents is must. In such cases even if your income is below taxable limit you should file your income tax return. And mind it this is same with banks and other agencies provides education loan.
Accidental Claim in Third Party Insurance
You might be not aware of accidental claim. Actually this is the responsibility of the state to save your life from accident or terror attack. And if there would be any miss happening with you third party insurance will be claimed. To demand this third party insurance court and insurance company always ask for proof of income of victim to arrive at the amount of claim. The Proof of Income which is best valid in court is Income Tax Return. Basic formula applied by court is multiplying number of years of remaining life of deceased with average income in ITR of last 3 years.
To create a Financial History
ITR is the best equipment to create anyone’s financial history. It might be possible that you save from your pocket money or you can have it as a gift from your parents, relatives or friends. You can have a sum of amount from freelance works or part time jobs. If you save and invest, it might be possible you can have a sum of high amount more than your salary in your starting jobs or internships. By any form if you have a high amount like 20 to 40 Lakhs you will not be any problem at the time of such a high value transition. If you are having a long financial history generally will not be on a red radar of income tax department but if you are asked any notice, you won’t have any problem to dissolve it. This is also another fact that if all members of a family files ITR they can justify any large transition may be of Crores. So even in case your income is below taxable limit you should always file so that your asset side is strong enough, in case you need to provide proof.
Sudhir Singh
