ITR Filing rules: Even people with low income may have to file ITR due to these reasons
ITR rules: Even if your income is less than the taxable limit, it may be necessary to file ITR under certain circumstances – such as large amount deposited in the bank, foreign travel expenses, high TDS or property abroad. This not only brings you under the purview of the law, but also helps in loans, visa and refund.
ITR Filing: Often people assume that if their income does not come under the tax bracket, then they do not need to file Income Tax Return (ITR). But there are some special circumstances where it is necessary to file ITR despite low salary or no tax. Sometimes it becomes legally mandatory.
Let us know in which circumstances you may have to file ITR despite having a salary less than the taxable limit.
In which cases is it necessary to file ITR?
1. Deposit of ₹ 50 lakh or more in savings account – If you have deposited a total amount of ₹ 50 lakh or more in a savings account in a financial year, then it is mandatory for you to file ITR, despite the fact that your salary does not come under the tax bracket.
2. Amount more than ₹ 1 crore in current account- If a person has deposited ₹ 1 crore or more in the current account, then it is mandatory for him to file ITR. This rule does not apply to business entities.
3. Business turnover above ₹ 60 lakh- If a person’s annual business turnover is more than ₹ 60 lakh, then he will have to file ITR, whether there is profit or not.
4. Professional income more than ₹ 10 lakh- If someone works as a professional like doctor, lawyer, chartered accountant or freelancer and their income is more than ₹ 10 lakh, then it is mandatory to file ITR.
5. Total electricity bill more than ₹ 1 lakh- If your electricity bills in a year are ₹ 1 lakh or more, then you will also have to file ITR.
6. TDS or TCS more than ₹25,000- If a total of ₹25,000 or more TDS or TCS has been deducted from your income in a year (limit is ₹50,000 for senior citizens), then you have to file ITR to claim refund.
7. Property or bank account abroad- If you have any property abroad, you are the owner or signing authority of a foreign bank account, even if it is not active, in such a case it is necessary to file ITR.
8. More than ₹2 lakh spent on foreign travel- If you have spent ₹2 lakh or more on yourself or someone else’s foreign travel, then it also becomes mandatory to file ITR.
Benefits of filing ITR
TDS refund is available: Tax deducted on bank or freelance income can be claimed as refund.
Strong financial record is created: It becomes a reliable document in loan, visa or government schemes.
Capital loss is carried forward: Old losses can be adjusted in future earnings.
Income document is created: There is proof of your income in any financial need.
Legal protection is available: The government gets a record of your tax status, which provides relief from notice or audit.
There is no penalty on late filing: There is no penalty even for late filing in case of non-payment of tax.
What is the taxable limit?
Before filing Income Tax Return (ITR), it is important to know whether your income comes under the tax bracket or not. For this, the government has fixed a basic exemption limit. In the old tax system, people below 60 years of age do not have to pay tax on annual income of ₹ 2.5 lakh, senior citizens of 60-79 years do not have to pay tax on ₹ 3 lakh and those above 80 years of age do not have to pay tax on annual income up to ₹ 5 lakh. Whereas, in the new tax system, no matter what the age, every person gets tax exemption on income up to ₹ 3 lakh. Sometimes tax is not payable due to some additional exemptions and rebates, but still filing ITR is a wise step.
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