POSTED BY July 2, 2009 COMMENTS (13)ON
Filing Income Tax Return is an important thing and as the date for filing ITR is approaching you should have a clear idea about how to file ITR. But is it mandatory to file Income Tax Return?
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.
As per Indian Income Tax Act 139(1), it is mandatory to file Income Tax Return, for every individual who’s income exceeds the exemption level.
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?
Didn’t 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, but not taxable income
Though your Income exceeds, 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 don’t have to pay tax, BUT !! you have to file tax returns because your income (not taxable income) was above the exemption limit.
There are other cases also when its more than paying tax. lets see those cases
Watch the video given below to know why it is necessary to file ITR:
There are some reasons why should file income tax return, which may look simple but they have a major impact on your financial life. Lets see what are those reasons:
Besides all these reasons, filing Income Tax Return on time makes you a responsible citizen.
Jagoinvestor is an initiative towards creating happy investors who take prudent and right financial decisions in their life.
Here is the list of some of our best content.