Why to file a Return, when tax is already paid and I am having a Form 16?

Consequences for not filing of return:

As per Income Tax Act 1961, Section 276CC: in case of willful failure to furnish the return within due time:

Where tax sought to be evaded exceeds Rs. 100,000, the punishment is rigorous imprisonment for not less than 6 month which may extend to 7 years and with fine.

n any other case, with imprisonment for a term which shall not be less than 3 months and which may extend to 3 years and with fine..

As per Income Tax Act 1961, Section 271F:

If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139, fails to furnish such return the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs. 5,000.

As per Income Tax Act 1961, Section 271(1) (c):

The person has concealed the particulars of his (including non furnishing of return), a penalty may be imposed for a sum which shall not be less than, but shall not exceed 3 times, the amount of tax sought to be evaded.

Who should file the return?

As per Income Tax Act 1961, Section 139(1):

Every individual, if his total income is more than the maximum amount which is not chargeable to income tax, shall, furnish the return of income on or before the due date.

Maximum amount (F.Y. 2009-10): Rs. 160,000 for resident man, Rs. 190,000 in case of resident woman below the age of 65 and Rs. 240,000 in case of resident individual above the age of 65.

Due date (FY 2009-10): July 31, 2010

I will file the IT return for this year and for previous years because:

It is beneficial to me in long-term for availment of loan and providing evidence of income history to any authority or visa departments.

Filings of IT return give me peace of mind and satisfaction to become a responsible citizen.