Query – I filed ITR but on the last page I got to know I am not liable to get any refund and the amount payable is 31,420. Why should I file ITR? Kindly answer it with quoting relevant section under income tax law in india.

Ans – Filing your Income Tax Return (ITR) is mandatory or advisable even if you are not eligible for a refund and have a tax payable of ₹31,420, as it ensures compliance with the law. Here are a few reasons why you must file an ITR:

1. Mandatory Filing of Return as per Income Level :- Under Section 139(1) of the Income Tax Act, 1961, individuals are required to file their income tax return if their total income before deductions under Chapter VI-A (like 80C, 80D, etc.) exceeds the basic exemption limit. For instance, the exemption limits are:• ₹2.5 lakh for individuals below 60 years, • ₹3 lakh for senior citizens (60-80 years), • ₹5 lakh for super senior citizens (above 80 years).

Since your total income results in a tax payable, it means your income has exceeded these thresholds, and therefore, filing ITR is mandatory.

2. Avoiding Interest and Penalties on Income Tax :- If you have a tax liability of ₹31,420 and do not file the return or delay filing, you may attract interest under Section 234A for delay in filing, Section 234B for default in advance tax payment, and Section 234C for deferment of advance tax. Additionally, failure to file ITR can result in a penalty of ₹5,000 under Section 234F, which may increase over time.

3. Legal Obligation Regardless of Income Tax Refund :- Filing ITR is not just about claiming a refund. It is your duty as a taxpayer to disclose all your income, compute taxes, and pay any remaining liabilities. Non-compliance may attract scrutiny and notices from the Income Tax Department, leading to complications.

4. Tax Credits and Future Proofing :– Even if you are not receiving a refund, filing ITR helps you maintain a clear record with the tax department. This record is essential if you wish to claim deductions or carry forward certain losses in future assessments under Section 80 (losses can be carried forward only if the return is filed on time).

By filing your ITR and paying the outstanding tax of ₹31,420, you are ensuring compliance with the tax laws and avoiding potential penalties or interest charges.