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  • Category: Tax Planning

    Is it required to file ITR even if the taxable income is below prescribed slab after 80C deductions?

    Presently the individuals are required to file ITR in case their annual income is more than Rs. 2,50,000. However deductions of up to Rs. 1,50,000 are allowed under section 80C. Is it required to file ITR even if the taxable income is below prescribed slab after 80C deductions?
  • #137604
    As per the Income Tax Act, 1961 an individual or any other person as defined in the act shall file income tax return if its income is above the thresh hold limit. In case of an individual it is Rs.2,50,000 p.a., therefore one should file return even if there is no taxable income.

    As you have asked that, after availing deduction u/s 80C, if you fall below the thresh hold limit then should you file income tax return or not, then the answer is yes.

    For e.g. If your annual income from salary is Rs. 4,50,000 and after availing deduction u/s 80C of Rs. 1,50,000 your net taxable income comes to Rs.3,00,000 (4,50,000 - 1,50,000), in such case your will get rebate of Rs. 5,000 u/s 87A and your income will not be taxable.

    Although your income is not taxable but you should file your return.

    Anyway one should file NIL return because at many times in case we require any loan, then they (bank/financial institutions) do ask for return of 3 years, so it will serve as documentary evidence that you had been working and had been filing your return for past years.

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  • #137607
    The condition in the as worded in income tax Act section 139 is: "... if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax,shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year...."
    Hence in the referred situation in the question, Income Tax return is to be filed.

  • #137616
    The deductions form with basic 250000 basic deduction which is common to all. Also include 150000 additionally. This makes the total contribution upto 4 L deductible if you have invested all 150000 in tax deductible investment options. In case of NPS, the additional 50000 apart from the 150000 can be included. So this way your taxable income can be a lot less. You need to calculate this along with the other taxes that you're supposed to be paid on the interest. For example interest on fixed deposits, recurring deposits and other investment. This way you need to figure that out. You can consult with the CA and decide if you get the deduction or not in such context. If that applies then you have to file the returns.

  • #137623
    Although you are not required to pay any tax, it is necessary to file return.
    Income Tax Act, 1961 states that an individual or any other person as defined in the said Act shall file Income Tax return if his/her income is above the thresh hold limit.
    Filing Income Tax return would be beneficial for you in future, because if you need bank loan for house-building or similar other purposes, you can submit the copy of filed return (ITR-V) as an evidence of your income.

    Caution: Explosive. Handle with care.

  • #141324
    For those people who have income around the threshold limits it is always a confusion that whether they should file or not the IT return.
    In such cases it is advisable to fill it regularly so that whenever it exceeds the limit and a refund is due, the return will be processed quickly.
    So filing of return regularly is a good practice irrespective of fluctuation in income around the threshold limit.

    Knowledge is power.

  • #141439
    The tax return is required to be filed if the gross total income earned by you from April 1, to March 31, exceeds Rs 2.5 lakh. Gross total income is the total income before allowing any deductions under Section 80C-80U of the Income Tax Act. Therefore it is necessary to file your tax return even there is nil tax. If you do not file the return , the Income tax deptt will issue notice to you . And there are various benefits for fillinf return , Hence you should file your return.

  • #144102
    Yes it is compulsory to file the return of income despite of net taxable income is equal to or less then the limit i.e. Rs. 2,50,000/- after taking consideration of deduction of 80 C.

    Because as per the provisions of income tax act,1961, every person whose gross taxable income is exceed the basic limit is compulsory to file the return of income.

    however it is given to relief to taxpayers to get deductions under chapter VIA (80 C deductions are covered under this chapter).

    so every person must file the return of income despite of there income is not taxable after getting deduction of chapter VIA otherwise the department will issue a notice that why did you not file the return of income of the particular year.


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