Tuesday, September 21, 2021

Should you file income tax return if your income is not taxable?

As per the tax provisions, submitting revenue tax returns is obligatory the place the gross complete revenue of a person is greater than Rs 2,50,000.

It’s common information that each Indian citizen whose gross complete revenue exceeds the taxable restrict in a monetary yr is required to file his/her revenue tax return (ITR). Nevertheless, generally some folks marvel if an individual can also be required to file his/her return of revenue if the revenue doesn’t exceed the taxable restrict? And, if sure, then in what circumstances?

Tax specialists say, as per the tax provisions, submitting revenue tax returns is obligatory the place the gross complete revenue of a person is greater than Rs 2,50,000. “One must take cognizance of the truth that the reference right here is made to the gross complete revenue which might imply the revenue earlier than any deductions underneath chapter VI-A. Thus, an individual having his gross complete revenue above Rs 250,000 must file a tax return even when finally he might not have any tax payable or might also have a refund,” says Aarti Raote, Accomplice, Deloitte India.

By regulation a person who might not have taxable revenue can also be mandated to file a tax return if he meets any of the beneath circumstances:

(i) The person has deposited an combination quantity exceeding Rs 1 crore in a number of present financial institution accounts with any financial institution; or

(ii) The person has incurred expenditure of an combination quantity exceeding Rs 2 lakh for himself or another particular person for journey to a overseas nation; or

(iii) The person has incurred expenditure of an quantity or combination of the quantities exceeding Rs 1 lakh in the direction of consumption of electrical energy.

Other than this, any particular person who qualifies as “resident and ordinarily resident” in India throughout a monetary yr is required to file a tax return even when the gross complete revenue is beneath the fundamental exemption restrict if he holds any belongings, financial institution accounts, signing authority in any account or beneficiary curiosity in any entity outdoors India. Such particular person is required to reveal this in his tax return.

Individually, “people claiming aid underneath the DTAA provisions, claiming refund of extra taxes, having carry ahead losses have to file tax returns to determine their claims and procure aid. A person also can select to file a tax return even when not mandated to make sure continuity in his tax data which can assist present obligatory documentation for acquiring mortgage, visa and so forth,” informs Raote.

Get dwell Inventory Costs from BSE, NSE, US Market and newest NAV, portfolio of Mutual Funds, Take a look at newest IPO Information, Greatest Performing IPOs, calculate your tax by Earnings Tax Calculator, know market’s Prime Gainers, Prime Losers & Greatest Fairness Funds. Like us on Fb and comply with us on Twitter.

Monetary Categorical is now on Telegram. Click on right here to affix our channel and keep up to date with the most recent Biz information and updates.

Latest news

Related news

LEAVE A REPLY

Please enter your comment!
Please enter your name here