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Is filing Tax return mandatory ?

by Manish Chauhan · 13 comments

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 .

See some videos on Mumbai Terror Attack , they are awesome .

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{ 12 comments… read them below or add one }

1 Ninja July 22, 2009 at 11:32 am

Can you tell me what form I need to use to file returns for refund of TDS deducted during my internship. My internship was from July-Dec 2006 and I found out that the tax deducted from the stipend then can be refunded, only recently. Is is too late to claim a refund now ?

Reply

2 Manish Chauhan July 22, 2009 at 11:51 am

@Ninja

oops .. i dont know that . You need to find out that from some other source .

Also , share it with us :) . One thing i suspect is that its too late to claim :(

Manish

Reply

3 Karan Batra (CharteredClub) August 17, 2009 at 2:25 pm

yeah you dont need to file your returns if your Taxable Income is less than the limits which attracts tax..

But it is always good to file … Advantages being that Loans can easily be procured as the return acts as a solid proof of Income

Reply

4 Manish Chauhan August 18, 2009 at 12:52 pm

@Karan

Yes .. you have a good reason for filing the return .. nice

Manish

Reply

5 Kalyan Ghose March 9, 2010 at 12:39 pm

I am a senior citizen. I own a self occupied house. My income is only from fixed deposit interest,equity dividends and total under the exemption limit. If I do not submit return now but some time later earn interest that takes me past the exemption limit can I resume tax return?
I realise I may have to pay C.G tax if I sell some share under the DTcode; when is it getting activated? what will be the first year of assessment under this Direct Tax code?

Reply

6 Kalyan Ghose March 9, 2010 at 12:44 pm

This is not clear to me if you need other detail. I understand DTC is coming into effect from April 2011. If I earn capital gain from selling more than 1-year old share during year April 2010-March 2011 do I have to pay CG tax under DTC?

Reply

7 Manish Chauhan March 9, 2010 at 2:39 pm

Kalyan

Only if your taxable income before the exemptions is above the limit , then you file the tax.

DTC is not yet sure to come , if its passed by parliament only then it will come into effect and it looks not that easy to me , the first assessment year would be 2012 , means it will be applied on mar 2011- mar 2012 income .

manish

Reply

8 Kalyan Ghose March 9, 2010 at 12:45 pm

No further comment.

Reply

9 Sripad January 19, 2011 at 3:00 pm

What is so awesome about terror attacks? You should remove that message and the link – its in bad taste.

Reply

10 Manish Chauhan January 19, 2011 at 4:07 pm

Sripad

By “Awesome” I mean the way they have shown what all happened so beautifully . You dont come to know about things in so detail , so it was an appreciation for people who created it . It was not about the event and what happened , It was unfortunate !

Manish

Reply

11 Chetan Ambi November 2, 2013 at 7:22 pm

I think it’s always good to file the returns. Btw nice article !!

Reply

12 Manish Chauhan November 4, 2013 at 10:26 am

Yes.. filing returns have a lot of benefits like home loan or later when you are asked for scrutiny !

Reply

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