Are you liable to file your Income tax return

Most of the Indians do not know that they have to file there IT return if there income exceeds the basic limit of exemption to file IT return. Earlier to the amendment, if an individual’s income exceeds the basic limit of Rs. 2,00,000 before allowing any deduction then such person has to file their IT return with the IT department.

Now the IT act has been changed by including a provision for filling ITR by which if your taxable income is equal or less than Rs. 5, 00,000 then it’s not required to file your IT return provided certain conditions are fulfilled. Those conditions are;

  1. Efilling your Income tax returnThe employee is a resident or non resident individual
  2. Employee’s salary income and saving bank interest does not exceed INR 5, 00,000 (saving bank interest should not be more than INR 10, 000).
  3. Employee has intimated his PAN number to the employer.
  4. Employee has intimated his saving bank interest for the purpose of calculation of TDS.
  5. Employee has received form 16 from the employer will all the details of tax deducted, deposited against the PAN Number.
  6. There should not be any tax refund due for the employer.
  7. During the year the employee has received salary from only one employer.

Acknowledgement copy (ITR V) of your IT return is used in so many places like for credit card application, housing loan and car loan as a proof of your income. If you avail this option of not filling your ITR then in those cases you will not be able to produce details of tax return. So it’s always advised to file your IT return before due date of filling. If you missed the due date then also one can file his income tax return before 31st march of the assessment year.

Editorial Staff at Yourfinancebook is a team of finance professionals. The team has more than a decade experience in taxation and personal finance.