A lot of people are confused about this simple question of when to file your tax return , In this short article lets see what are the conditions under which you need to file your tax return . People say that if you don’t have to pay tax , you don’t have to file returns which is not true totally . Lets see the simple rules .
Rule : You have to file your tax returns if your Total Income for the year exceeds the exemptions limit . That’s it !! , This is the only rule which applies .
Exemption limit can be different for male (1.5 lacs) , female (1.8 lacs) or senior citizen (2.25 lacs) . So if your Total income for the year exceeds your exemption limit, you have to file tax . Do you know how to calculate your tax ?
Should I file tax return even if I don’t have to pay any tax ?
Dint you read what is said above 🙂 . The only rule is already mentioned above . You don’t have to pay tax . this can happen in two cases .
Case 1 : Income itself is below exemption limit
In this case you don’t pay tax and don’t file your Returns .
Case 2 : Your Income exceeds your Income , but not taxable income
Though your Income exceeds your Income , but After all the exemptions and deductions like 80C investments , HRA , Home loan interest exemption etc etc , your taxable income is below your exemption limit . In this case you dont have to pay tax , BUT !! , you have to file tax returns because your income (not taxable income) was above the exemption limit .
What are the other cases when I have to file the returns ?
There are other cases also when its more than paying tax . lets see those cases
- If you have some form of losses carried forward in subsequent years to write off against profits in future , in that case its obvious , that you will have to file a return so that you can give this information .
- If Govt itself gives you notice to file tax return , it may happen that you are cheating this nation and making black money , then tax department can ask you for details and you will have to file tax return .
- If you want a Tax refund because of TDS (Tax deducted at Source by your company) . This happens with people who do part time jobs for some months or with Interns in the company who are there for 3 months or 6 months and TDS is cut . So in order to get back the amount you have to file a tax return .
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