- Syrma SGS Technology IPO: Issue filled 37% on Day 1; should you subscribe? Anil Singhvi suggests this
- Samsung Galaxy Z Fold 4, Galaxy Z Flip 4 price in India revealed - Pre-booking, offers and specifications
- Har Ghar Tiranga campaign: Over 30 crore National Flags sold; CAIT says business worth Rs 500 crore generated
- Atal Bihari Vajpayee death anniversary: Remembering the poet Prime Minister of India
- From Rakesh Jhunjhunwala's portfolio: 5 Tata Group stocks that made him ace investor
Income Tax: Is it mandatory to file ITR even if your annual income is less than Rs 5 lakh/annum?
Income Tax Return Alert: If your income is up to Rs 5 Lakhs you pay zero tax, but you must still file ITR.
Income Tax Return Alert: Filin income tax return (ITR) is one of the most important tasks for an earning individual. One can file IR both offline and online, however, there is confusion among some earning individuals whether it is mandatory to file ITR if they have an annual income below Rs 5 lakh or they can skip filing ITR in such case. As per the tax and investment experts, those earning individuals who have an annual income above Rs 2.5 lakh but less than Rs 5 lakh, they must file their ITR otherwise they won't be able to claim the income tax benefit up to Rs 5 lakh as announced in the union budget 2019. However, those tax and investment experts also maintained that those earning individuals who have business income, they must file their ITR even when their annual income is less than Rs 2.5 lakh.
Speaking on the matter CS Sudheer, CEO & Founder at IndianMoney.com said, "If your income is up to Rs 5 Lakhs you pay zero tax, but you must still file ITR. The income tax exemption is Rs 2.5 Lakhs a year for citizens below 60 years and Rs 3 Lakhs a year for senior citizens between 60 to 80 years. If you are earning anything above these limits, it’s compulsory to file ITR." Sudheer said that an earning individual can claim a rebate on tax payable if the taxable income is up to Rs 5 Lakhs under Section 87A. If your income is up to Rs 5 Lakhs and you don’t file ITR, you will get a tax notice. Filing ITR is mandatory if your income is more than the basic exemption limit (Rs 2.5 Lakh a year) for citizens below 60.
See Zee Business Live TV streaming below:
Jitendra Solanki, a SEBI registered tax and investment expert said, "In the budget 2019, the Modi Government has given income tax rebate from Rs 2.5 lakh to Rs 5 lakh income. The income tax slab is still allowed zero income tax on income up to Rs 2.5 lakh. Hence, to claim this income tax rebate, one needs to file his or her ITR otherwise he or she would become liable for income tax payment that would be deducted at source through his or her employer." Solanki said that for those who have income below Rs 2.5 lakh, it's not mandatory for them to file their income tax return but for all those salaried people who have income above Rs 2.5 lakh, he or she must file its ITR by 31st of August 2019, the last day to file ITR.
Citing tax liability for taxpayers with net taxable income not exceeding Rs 5 Lakh is zero, CS Sudheer of IndiaMoney.com listed out the three points mentioned below for each and every individual who has an annual income above Rs 2.5 lakh but below Rs 5 lakh:
1] You must declare gross total income by filing ITR. (This is all income like interest income, salary and so on);
2] You then claim tax exemption and tax deduction like HRA, standard deduction, Chapter V1A (Section 80C to U), home loan interest and so on; and
3] After claiming all deductions under income tax laws from gross total income, if net taxable income doesn’t exceed Rs 5 Lakh, you get a rebate under Section 87A.
So, filing ITR is mandatory for those salaried individuals who have an annual income above Rs 2.5 lakh but less than Rs 5 lakh. However, in the case of a businessman, it is mandatory to file ITR even when once income is less than Rs 2.5 lakh.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.