It is imperative that salaried individuals recognize tax filing as one of the benefits rather than considering it a cost. The tax deductions made from the salary every month can only translate into savings when the taxpayer file the return of income tax at the end of a financial year. This leads to the inclusion of name in the ATL – Active Taxpayers list.
Once an individual’s name is in ATL, the tax rate significantly reduces. In light of the recent revisions, the government exposes non-filers to double the rate as to that for filers. Apart from the high tax rate, a non-filer also tends to miss the opportunity to claim rebate due to disengagement with the tax planning process. A part from that, non-compliance could also result in penalties.
Given below is a list of taxes rates for filers and non-filers:
- A filer will only pay 15% capital gain tax on the disposal of securities and shares as compared to non-filer who will pay 30% tax.
- On cash withdrawal and banking transactions, a non-filer would be charged a 0.6% tax on their transactions above Rs. 50,000/-. Whereas, a filer will be able to make transactions tax free.
- For general insurance premium, a filer will not pay any taxes but a non-filer will be charged 4% taxes.
- Buying and selling of immovable property would be taxed at 1% to filers; whereas, 2% will be taxed to non-filers.
The same benefit is also applicable to the purchase of vehicles:
- A non-filer will be taxed 4% at the time of leasing a motor vehicle, whereas a filer will not be tax rather they will pay the lease amount only.
- When it comes to withholding taxes on car registration:
- Filer will pay a range from 7,500 to 250,000
- Non-filers will pay a range from 15,000 to 500,000
- For annual car token tax payments:
- Filers will pay a range from 800 to 10,000
- Non-filers will pay a range from 1600 to 20,000
The tax rate on investments and savings is also reduced for filers:
- A filer will be charged 15% tax on dividend received while a non-filer will be charged 30% tax.
- When a filer wins prizes on prize bonds, then they will pay 15% tax and a non-filer will pay 30% tax.
- For tax profit on debt:
| Filer | Non-filer |
| Up to 5 million – 15% | Up to 5 million – 30% |
| From 5 million to 25 million – 17.5% | From 5 million to 25 million – 35% |
| From 25 million to 36 million – 20% | From 25 million to 36 million – 40% |
Become a filer today to streamline your finances while you save yourself from higher taxes, and penalties. File your taxes using Befiler.com to become a filer within minutes without any hassle.
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