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  • Category: Tax Planning

    Income tax return for housewife with no income


    Wondering how to file IT returns if a person does not earn any income? Searching for the procedure and in which condition to file returns? Check out this page for answers to all your questions on this Ask Expert page.

    Should my wife file income tax return? Being a housewife, she has PAN card but no income. In such case should she file her income tax return? If yes what care should be taken during filing? What are the cases in which one must file income tax return? Can you clarify the same?
  • #144051
    As per my knowledge, she does not need to file income tax return when she has no earning. As the name suggest, it is required for person earning and paying income tax on his income but want to file refund request against any of the expenses like house loan.
    Even if the person is earning but his or her earning are below the income tax slot, he or she does not need to file ITR and only Form 16 from the employer is sufficient. This Form 16 mentions about all the details about earnings and when it does not meet the income tax slot, there is not need to pay and file refund for income tax.

    Padmini

    Living & Learning- simultaneous processes!

  • #144052
    Any individual whose annual income is less than Rs.5.00.000/-. no income tax is to be paid. You are talking about a housewife who don't have any income. So absolutely there is no need to submit income tax returns. Even she have a pan card she need not pay.
    But if she is having some fixed deposits on her name in any bank and if the bank is deducting 10% on the interest they are paying, your wife has to apply for refund of that money if she is not coming to tax bracket. In such case she has to submit tax returns. However if there are no FDs no problem.

    drrao
    always confident

  • #144056
    If a person has no income, he/she is not required to file Income Tax return. However, at the same time, I would advise you to re-check the interest income and/or rental income of your wife (if any). If there is interest income or rental income in her name, she should file Income Tax return with zero tax liability, if the said income is less than Rs. 5 lakh per annum.
    Caution: Explosive. Handle with care.

  • #144065
    Sometimes the housewives get some substancial amount as gift from their parents or brothers or relatives and it is deposited in housewife's name.

    Similarly there may be other deposits in her name or LIC policies, bonds, shares, post office deposits etc. It is also possible that some ancestral property in her name or shares and mutual funds in her name are sold and some gain is realized. These gains are taxable under short term and long term gains category. There may also be some accumulated savings in her saving bank account. From all of these accounts some income will be generated as interest which is taxable after certain discounts or deductions.

    So the total earnings from interest from her accounts may be a small amount or substancial amount but banks will deduct TDS on it until she has filled form 15G/15H in the first quarter of the respective financial year.

    Whatever the case may be if earnings from various sources are substancial and/or refund is to obtained from IT deptt. then only the question of filing return arises.

    Once you have considered all the income from various sources in her name you can find out whether return is to be filed or not.

    If you have already worked out and found that her income is nil then there is no need to fill the return.

    Knowledge is power.

  • #144068
    If there is no income, then there is no tax liability. If there is some form of the income which is beyond exempted limit, then the tax liability stands. In your case there does not seems to be the case for her with any income liability.

    As for the PAN card, make sure she gets one. Because income tax or not, there are some cases where having PAN card is important. Like say if she chooses to have FD or mutual funds.

    Housewife or not. If the person has income from any source which is beyond taxable limit. Say she's earning 2.5L through some sources say rented property etc. Or some gift. Then the tax does apply. You have to understand that in such cases income tax need to be filed.

  • #144076
    If a housewife has no income in her name then there is no question of filling the return.
    In some cases the husband invests substantial money in the name of wife. The income derived from those investments will not be treated as income of the wife but it will be clubbed with the income of the husband only and will be taxable there.
    It is the responsibility of the husband to add all the income from his money whether in his name or wifes name in his income tax return. Some people do not follow this and have problems in long run as tax deptt can query on those things.

    Thoughts exchanged is knowledge gained.

  • #144081
    First of all ensure :
    1. There is no type of income coming to her name whether as interest from deposits, investments,incentive, commission, rent etc. or any kind of income to her coming in her name.

    2(a) If answer to 1 is that there is absolutely nothing as income to her, then she need not file income tax return.

    (b) If answer to 1 is 'yes there is some income' but the total amount of money that came in during the financial year is less that the tax threshold( Rs 2.5 L for people below 60 yrs ) then also she need not file It return.

  • #144100
    As you asked in your question that your wife has a PAN Number but does not have any income then its means that there is no any need to file the return of income in this case as you mentioned. However in many cases we have to file the return of income and one of that is if we filed the return of income in last year i.e. if we have filed our return of income in last year or once we start a filling a return, in this case we have to file the return of income whether we have any income from any source or not.

    Now the procedure of filling the income tax return is given below:
    There are many types of ITR(Income Tax Return) which we have to filled with departments
    Let suppose ITR-4 This ITR relates with business or profession's income.

    As like you your wife have any income example bank interest, interest on FD, tuition income etc. then your wife will have to file the return of income and in this case your wife should disclose her income in form ITR-1 or ITR-2.

    If your wife has any salary income then in this case also your wife should file the return of income in above mentioned ITR forms.

    If your wife has a business income or any professional income suppose your wife is a doctor or lawyer, in this case your wife should file a return in form ITR-4.

    However the basic limit for AY 2018-19 for individuals is Rs. 2,50,000/- i.e. up to Rs. 2,50,000/- (net income) there is no any tax and after from 2,50,000/- to 5,00,000/- there is only 5% tax on income.

    Here net income means the income which is arrive or calculated after deduction of chapter VIA i.e. deductions under section 80C, 80TTA, 80D,80GG etc.

    Apart from that your wife can get relief under section 87A, if net total income not increased from Rs. 3,50,000/-.

  • #144104
    In certain posts above it is commented that no tax be paid if the income is below Rs.5 lakh. It is not correct. If the income is below Rs. 2.5 lakh no tax need be paid. If it is more than Rs.2.5 lakh and below Rs.5 lakh 5% tax has to be paid. Above Rs. 5 lakh it becomes 20% tax.
    T.M.Sankaran
    Gold Member ISC


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