The last date to file your income tax returns for the 2019-20 assessment year is August 31. If you earned over Rs 2.5 lakh before tax deduction, then you are liable to file tax returns. Even if your tax liability is reduced to zero post deductions, you should file your returns.
Even though filing tax returns is not mandatory for all, it is best you do it so you can enjoy the following benefits:
Avoid penalty: If you fail to file your returns before the deadline, you will have to pay a hefty penalty at the time of filing. You will have to pay Rs 5,000 if you file your return after the due date but before 31 December, 2019 and Rs 10,000 if you file it between 1 January and 31 March, 2020.
Claim refund: There is a possibility that tax was deducted on some investments made by you. For example, if you have a fixed deposit in the bank, the interest that you receive on the FD can be taxed. Only if you file your ITR will you be able to claim a refund.
Visa processing: If you are travelling abroad, then your I-T returns come in handy. You will be asked to furnish returns from the last few years when you apply for a visa.
Easy bank loan: While applying for a bank loan, the amount that can be given to you will depend on your income. The income tax returns will give a clear picture of your income earned during the year and how much tax you have paid. This will help fast-track your loan process.
High-value insurance: Buying life/term insurance of Rs 50 lakh and above has become common nowadays. However, you can get such a cover only if you submit your income tax returns.
If you have already filed your income tax returns and are waiting for a refund, here's how you can check the refund status online.
Log into the Income Tax department website
Go to 'My Account'
Click on 'Refund/Demand status'
You will find the assessment year status, reason for refund failure if any, and mode of payment