WHY YOU SHOULD FILE ITR-DECODED-BY CS ROHIT KUMAR

Income Tax return filing mandatory
Why you must file ITR

Most people incur losses or their income does not exceed basic basic exemption limit, so they think there is no need to file ITR but this notion is wrong. Everyone must file ITR because of following reason.

WHY YOU SHOULD FILE INCOME TAX RETURN

1. If you do not file ITR then you can not carry forward of your losses. Carry forward of losses means that taking losses in the next year, and if you have any income next year then you may set off your previous year loss against such income. 

For Example, in current year you did trading in share market and incurred a loss of Rs. 2 Lakhs but in next year your income from share market is Rs. 3 Lakhs, then first you should reduce last year loss from this income then you shall pay tax on balance amount i.e. Rs. 1 Lakh [3 Lakh - 2 Lakhs] .

2. Sometime various purposes you need last 3 or 4 years ITR such as taking credit card, applying for bank loan, passport etc. Therefore, even if you do not have any income, still you must file ITR of NIL tax.

3. When you declare income in ITR, then that income is considered as legal income or white money and nobody can question you in future about source of that income.

So, you all must file income tax return.


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