Saturday, April 10, 2021

Don’t have taxable income? You still need to file income tax return in these cases

The gross whole revenue will not be the only determinant for a person taxpayer’s obligation to file the tax return in India.

In case you are an Indian citizen and your gross whole revenue exceeds the taxable restrict in a monetary 12 months, then you might be required to file your revenue tax return (ITR) for that 12 months. Equally, these whose revenue doesn’t exceed the taxable restrict in a monetary 12 months are normally not required to file their return of revenue. Nevertheless, this is probably not true in all of the instances and a few individuals could also be required to file ITR even when their gross whole revenue doesn’t exceed the taxable restrict.

Let’s check out the classes of people who’re mandatorily required to file the tax return no matter their revenue threshold.

“The overall obligation to file an income-tax return by a person arises if the gross whole revenue (earlier than claiming the desired deductions /exemptions) exceeds the essential exemption restrict of Rs 2,50,000 throughout a selected monetary 12 months,” says Akhil Chandna, Affiliate Companion, Grant Thornton Bharat LLP.

Nevertheless, if the above revenue threshold will not be met, then a person could also be obliged to file the income-tax return in sure instances specified within the legislation as beneath:

# Particular person holding any asset (together with monetary curiosity in any entity) positioned exterior India; or

# Particular person having signing authority in any account positioned exterior India; or

# Particular person being beneficiary of any asset (together with monetary curiosity in any entity) positioned exterior India.

Additional, the Funds 2019 additionally added the beneath classes of people that are mandatorily required to file the tax return no matter their revenue threshold:

1. Particular person who has deposited a sum of greater than Rs 1 crore in a monetary 12 months in any present account held with a financial institution or a co-operative financial institution.

2. Particular person who has made an expenditure on overseas journey of greater than Rs 2 lakh in a monetary 12 months.

3. Particular person who has incurred electrical energy bills of Rs 1 lakh or extra in a monetary 12 months.

Equally, “the income-tax return submitting might also be required whereas availing any tax treaty aid, claiming refund of extra withheld taxes or whereas making use of for a private mortgage and many others,” informs Chandna.

Due to this fact, the gross whole revenue will not be the only determinant for a person taxpayer’s obligation to file the tax return in India and all of the above information should be analysed fastidiously earlier than making any determination.

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