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  • Category: Miscellaneous

    Students should file their Income Tax Return once they reach 18 years of age.

    All the students who have reached the age of 18 should file their Income Tax Return. This way they will adopt a very healthy financial habit as well as the ITR filing will ensure a lot of benefits to them in future. Few of the benefits are given below:

    1. One can receive tax free gifts from parents and relatives.
    2. A healthy habit of saving will be cultivated.
    3. ITR can be used as proof for VISA processing
    4. ITR will help in easy loan approvals, if needed.
    5. ITR will serves as address proof.
    6. ITR will serves as Income proof
    7. ITR will help in credit card processing, if applied for.
    8. It will help in buying high value policy at lower premium.

    There are various other benefits which comes added with ITR filing for a student but, the question also arises that if there is no income then why file an ITR?

    Usually, students also earn through tuitions, receive gift in cash, even earn on ISC, etc. They can disclose such income in their ITR and this way they will not only learn about the tax processes but also get the above-mentioned benefits.

    If there is no Income, then too a NIL return can be filed. Also fear of taxmen and tax department will also come down, which will be a major psychological victory.
  • #710670
    This is a welcome suggestion by the author. Students should learn these things from the beginning itself as this would be very helpful for them in the later stages where they start earning. Only thing is many students would not like to go through the hassle of filing it. It is an unnecessary exercise for them as they are already in big problem searching for jobs and making a career. There are employed persons who are earning good money and they even do not like this act of filing return and feel it as a big botheration. Most of them give this headache to some CA or IT agent who does this on their behalf.
    Knowledge is power.

  • #710675
    Students are not good earners. What is the use of filing an IT return if they don't earn the tax-free amount of Rs 5,00,000? By submitting a Nil return, we are overburdening the Tax department to go through Nil returns. I think it would be a vague exercise. Of course, they can learn to file Tax returns, not file a return when not required to be filed.
    No life without Sun

  • #710691
    Many of the students will not have any income. If they earn also it will be definitely less than the taxable limits. If a student is having income more than Rs. 5,00.000/- per annum should submit their ITR without fail. Whether you are a student or an employee or a housewife, your level of income will decide whether you have to file an ITR or not. I know some students who have some fixed assets and getting good income on those and they are filing ITR.
    But all students who crossed their 18th years need not go for ITR submission.
    Students should inculcate the habit of saving money and should know where to spend or where not to spend. An ITR may not help in these aspects. The parents should teach them the importance of Savings. Earlied days some banks were offering Kiddy bank accounts and many children used to have these accounts. I don't know whether they are existing these days also. Of course, if somebody wants to submit, they can do it. But we should not make it compulsory.

    drrao
    always confident

  • #710700
    The words income tax indicates that those who earn the income from some source and that is above the stipulated amount of relief has to file the return for the purpose of being a sincere tax payer. In the case of students, they are heavily and solely depend on the parents source to fund their education and future career education and in that case filing income tax return does not warrant importance because nil income tax return is no use for the candidate nor the government and the paper work would be more if this suggestion followed. In foreign countries there are much scope for earning during the student days and some companies pay them the salary either full time or part time through the cheque payment and that need to be accounted for. In that case going for income tax return would be helpful.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #710704
    When the earning is not taxable, it is not worth filing ITR. When I was new at my job (earning was not taxable), the CA suggested me not to file ITR as it is waste. Neither government will get anything out of it nor me. Even if the person is looking for a loan (but the income is non-taxable), the salary slips and appointment letter with all the details are sufficient.
    It is good to learn about savings and but then there are many other ways for this. Secondly filing ITR is not a big job nowadays as it can be done online by an individual. So, it's better not to burden the Income-tax department with such files.

    Padmini

    Living & Learning- simultaneous processes!

  • #710713
    Even when the student applies for the purported loan for higher education, the antecedents of the parents and their credit worthiness and also the guarantor credit worthiness is being assessed and no way the student is asked to submit the income tax returns. However in future it may be made compulsory to bring the students into the income tax net as sooner or later they are going to earn once they get the campus interview jobs.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #710714
    The benefits of filing return is clearly mentioned in the thread, so it is an individual choice to file or not file return if below the taxable limit. With regard to burden on Income-tax department, the return is processed by software and not by individuals. So, there is no paper work involved or any tax official will be burdened.

    Even when cases of scrutiny comes up that too is picked up the software based on red flags raised based on discrepancies in ITR and previous years returns.

    Anyway, there are hardly 1% of people in India who file return although the income of millions exceeds the taxable limit. So inculcating a good habit at an early age will only broaden the understanding of future generation in this regard.

    We all want rights but responsibility should be fixed on someone else.

    Live before you leave.

  • #710715
    Benefits or no benefits, my question is, why do we want the younger generation to be totally equipped by the time they face the world all alone? Has the luxury of having everything at their fingertips crept in so deeply that we want them or maybe they themselves want to be ready for anything as they step out from the safe hands of their parents? Students are already learning so much in advance that they don't have enough time to learn the basic values of life. Before asking them to file their IT returns for all the benefits that have been listed by the author, I would suggest we ask them to go to a nearby vegetable shop and get some vegetables for the day (without a list) or to the Kirana store and get some grocery (maybe with a list). Let them learn to live on their own before learning such intricacies which they will anyhow, as we all did, learn as time passes.
    “The door to wisdom is knowing yourself." Anonymous

  • #710722
    Yes, it is true that with time World teaches all the lessons needed. Students too will learn the process of filing return and lot more. My suggestion with this thread was to raise an awareness and also reduce the fear we all have in our mind about taxmen and tax department. Sooner or later everyone learns their lesson but, it is not necessary to always make your own mistake and learn, we can always learn from other's mistakes too.

    When we teach our young to walk or ride a bicyle, we always take care that they do not get hurt, we are there to support and motivate them. Similarly, this process is a simple exercise but the awareness is very low. Most of the time even salaried person runs to a consultant to get his returns filed for last 3 years because, he needs to avail a home loan or any other loan. I have witnessed many people coming up and asking 'I hold a PAN, so is it compulsory for me to file return?' Now to answer them from the beginning as to what is PAN and what is ITR becomes tedious process. Such lack of information should not be there. Most people come to ask of ways to avoid tax payment and don't want to comply with any rules. They want the consultant to tell them ways to convert or hide their income rather than making a fair and full disclosure. This is nothing but a step towards moral corruption.

    Children today are much more aware and they question everything and if we dodge their questions we may cast a wrong impression upon them. Letting them know about things that would be a part of their life will only prove beneficial and not a burden.

    Yes, they will face and learn in due time, as we all have equal amount of time i.e. 24 hours a day.

    Live before you leave.


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