Who needs to mandatory to file ITR?
As per Income tax laws;
You need to file your income tax return if your gross taxable income (without any tax saving deduction) is more than the basic tax limit applicable for you.
is defined as
Total Income for the financial year
Conveyance Allowance, LTA, HRA, Profession Tax, Home loan interest, etc.
exemptions under Section 80C to 80U etc which includes investments such as ELSS, PPF, NPS, Insurance etc
§ For citizens below 60 years of age – Rs 2.5 Lakhs
§ Between 60 and 80 years (Senior Citizens) – Rs 3 Lakhs
§ Above 80 years (Very Senior Citizens) – Rs 5 Lakhs
1. If you are 58 years of age and your income is Rs 3 lakhs, you need not necessarily pay tax as you can invest Rs 50,000 in Sec 80C (such as PPF, ELSS etc) and .
2. If you are 81 years of age and your income is Rs 4.5 Lakhs as the basic tax limit is Rs 5 lakhs for very senior citizens.
1. You have to claim any excess tax deposited
2. You have losses that you want to take forward to next financial years
3. If you have any foreign asset or income from sources outside India
4. If you have income from property held by a trust
Why filing ITR is good idea?
Other than the categories of people described above who needs to mandatory to file ITR, because of following reasons:
1. ITR is required when you . This serves as valid income proof especially for the self employed.
2. Also it’s useful document when you for some countries
3. The filing of ITR is especially if you income sources only from salary/pension, fixed deposit interests etc.
Is e-filing ITR mandatory?
You would need to e-file your income tax return in case
1. You have to claim refund of excess tax paid
2. Your gross income is more than Rs 5 lakhs
3. ITR forms 3, 4, 5, 6 & 7 have to e-file
Last date for Filing ITR?
. However in case you are carrying on a business and your accounts are required to be audited, the due date gets extended till September 30, 2015.
What if you miss the ITR deadline?
In case But in either case you loose on following benefits:
1. You cannot revise your returns in case you find any error on a later date
2. You cannot carry forward your losses
3. In case you had tax due, you will need to pay penalty on that – 1% for every month of delay
What’s the Penalty for non-filing ITR?
In case you do not file your income tax return for AY 2015-16 by March 31, 2016 (but should have filed as per IT laws), after hearing the credits of your case.
Ideally everyone with income should file their IT return as it serves as valid proof of income. Paying taxes and filing returns are two different things and you should not default on either. So even if you paid all your taxes or have zero tax liability you must file your returns as per law.