Income Tax Return: Is it mandatory to file ITR if your annual income is below Rs 5 lakh? Here is what experts say
Last date to file your Income Tax Return (ITR) is August 31 and people who haven't filed their ITR have less than a week left to file their ITR.
Income Tax Helpline: The last date to file your Income Tax Return (ITR) is August 31 and people who haven't filed their ITR have less than a week left to file their ITR. They can file it either offline or online but there is a debate going on whether someone needs to file his or her ITR if one's annual income is less than Rs 5 lakh. According to tax and investment experts, those who are salaried and have an annual income above Rs 2.5 lakh and less than Rs 5 lakh, they must file their income tax return otherwise they won't be able to claim the income tax benefit up to Rs 5 lakh as announced in budget 2019. However, they also maintained that those who have business income, they must file their ITR even when their annual income is less than Rs 2.5 lakh.
Speaking on why it is mandatory to file if one's income is less than Rs 5 lakh but above Rs 2.5 lakh 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.
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Standing in sync with Jitendra Solanki's views on for whom the income tax return is mandatory and for whom it's not mandatory Manikaran Singh, a SEBI registered tax and investment expert said, "For a salaried person having annual income above Rs 2.5 lakh, it's mandatory to file his or her ITR to claim the income tax rebate up to Rs 5 lakh income. However, for a business person, it's always advisable to file his or her ITR." Manikaran said that for a business person, filing an ITR helps them build their business asset as ITR helps a businessman to make a good and strong tax record. Apart from this, Manikaran said that ITR of a businessman helps him or her to claim the business or bank loan with ease. So, a businessman should always file his or her ITR even when its annual income is less than Rs 2.5 lakh.
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