You must always file your income tax returns and never hide your interest income while doing so.
1. File returns on time
It is important to file your income tax returns on time. If you have pending tax liability and you do not pay up within the stipulated time period, the penalty charge adds up every month. If you miss a deadline, file the return as soon as possible.
2. Filing before time is always better
Always try to file your tax returns as early as possible. It is better to complete the job before the deadline as you will have to pay a penalty if you cannot file it in time for any reason. Do not wait till the eleventh hour to fill your returns.
3. Good financial records
Filing all your tax returns in time ensures a clean financial record. Obtaining a Visa or a loan in the future becomes easier with a clean financial record.
4. Time is limited
Filing of tax returns has a time limit. If you miss the deadline, after a certain amount of time, you cannot file that return. In that case, it will be a permanent black mark on your financial records provided by the Tax department.
5. Change of rules
The Tax department, at times, brings changes to the rules and regulations of the tax structure or introduces new criteria for tax payments. Filing tax returns on time will place you in the right cycle and help you avoid any confusion regarding the changes.
6. Future investments
If you plan to invest in funds or shares in the future, you must have a clean tax record. If you pay all your taxes on time, you will have a proof of your permanent source of income.
You must also show your interest income while filing income tax returns. Following are the reasons:
An income tax officer can always reopen your files and if they find that you have failed to mention any income amount, they can charge you the same in future.
If you do not mention an income amount while filing your tax returns, you will be subject to a huge penalty in the future.