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  • Category: Tax Planning

    Who needs to submit Income Tax Return?

    Have a query about IT returns? Searching for the detailed information about who needs to file the IT returns? Find responses from experts for your questions here.

    Since deadline to submit Income Tax Return (ITR) coming and this time there is penalty of 5000 Rs. , makes lot of people confused that who needs to submit ITR? Mainly salaried people must have to do submit ITR but there are lot of people daily wage workers, home maker, domestic workers, pensioners and so on. So their confusion I observed that they don't know if they have to submit ITR or not and moreover they don't know what ITR means and how to submit it.
    So can someone please clarify who needs to submit ITR? I request please do not give answer of process of filing ITR.
  • Answers

    8 Answers found.
  • The following is the criteria:
    A person who is less than 60 years of age with total annual gross income exceeding Rs. 2,50,000.
    A senior citizen ( 60 years or above and below 80 years of age)with total annual gross income exceeding Rs3,00,000.
    A super senior citizen ( 80 years or above) with a total annual gross income exceeding Rs5,00,000.
    A company or a firm
    A person looking for claiming a tax refund for the financial year.
    Any Indian resident who acts as a signing authority for any foreign account.
    An Indian resident who possesses an asset or financial interest located outside India.
    If sold equity shares in a company or unit of an equity oriented mutual funds or unit of business trust for more than Rs.2,50,000 and have gained tax-exempt long-term capital gains from the same.
    A person receiving any income from the sale of a property which had been held under a charitable trust, religious trust, political party, educational institution, any authority, body or trust.
    A person falling under any of the above criteria should file ITR.

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  • Simply speaking any person whose total income from different sources exceeds 250000 (for seniors it is 300000),has to file income tax return.

    When we say different sources it means all the income from salary, pension, interest on deposits, interest on bonds, interest on Post Office deposits, income from house given on rent, one time investment policies of LIC etc.

    There are some exemption in such incomes and after that generally the taxable income will be less and may be below the threshold of 250000 and as such no income tax is to be paid.

    In such cases, one can either skip filing the return or just file it for zero tax for future records.

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  • If your gross total income is more than 250000 than you need to fill ITR(Income Tax Return). Last date to file ITR is 31st July for individuals and 30 September for Companies. 300000 rupees for senior citizens aged above 60 or less than 80. 500000 rupees for Super senior citizens aged above 80. You can filed ITR offline as well as online electronically. There are many benefits of Filing ITR, it can easy for you to get visa and loan from bank.

  • With reference to the Income Tax Department , income tax are taxes that an individual or a Hindu Undivided Family or any taxpayer other than companies, pay on the income received are responsible to pay taxes.

    People who pay income tax are generally individuals who earn an income either online or offline e.g. from a salary, commission, fees, work from home online webmasters, freelancers, Geeks and etc.

    Here are some important points where you gain complete understanding about income tax. They are tabulated below.

    PS: You do not need to submit a return if ALL the criteria below apply to you.

    1. One's total employment income / salary for the year (January 2017 to February 2018) before tax (i.e: gross income) was not more than Rupees 350000 or three lakh fifty thousands.

    2. You only received employment income / salary for the full year of assessment (January 2017 to February 2018) from one employer.

    3. You have no car allowance/company car/ travel allowance or other income (e.g. interest or rental income)

    4. You are not claiming tax related deductions/rebates (e.g. medical expenses, retirement annuity contributions other than pension contributions made by your employer, travel).

    The above tabulated are the main bases where you decide whether to pay IT or none.

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  • There are some confusions in the mind of people whether they should file the IT return or not. As the categories and limit of income has already been detailed by other members I will not be repeating them but one thing which I want to clarify is that the income tax is based on the total income of a person from different sources.

    These sources could be salary, house property, stock market, selling of ancestral property, agricultural income, income from bonds and debentures, gifts from relatives, remuneration from part time coaching and tutorials, online work, working as reseller in online portals, consultancy or advisory work etc. So in nutshell the income constitutes the sum total of all the above elements.

    Now many of the above are exempted from tax while many others have certain deductions allowed before working out the taxable figures.

    So after this exercise if the amount is coming above the limits as stipulated by other members in the above posts, the individual has to file a return otherwise he can simply skip this.

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  • The following people are required to file an Income tax return.

    1. Total income (gross) more than 2.5 lakhs for the financial year 17-18, the 2.5 L is relaxed to 3L(60-80 years) and to 5L (people above the age of 80.

    2.Any one intending to claim a income tax related refund (overpayment of TDS, carried over losses from shares and mutual funds etc).

    3.If you own a company or firm (active or inactive)

    4.If you want to carry over a loss in equity or mutual funds for the next few finanical years.

    5. If you are in recepit of capital gains from equity, mutual funds or buisness related sales.

    6.If you have come to hold income or property from trusts and other institutions.

    The key here is the total income, if a home-maker has capital gains, interests and rent coming in her name and that exceeds 2.5 Lakhs before deduction, then she would need to file a return.

  • For the individuals:
    1. If a person's gross total annual income is more than Rs. 2,50,000/- (in case of seniors, more than Rs. 3,00,000/-), he/she is required to fill the Income Tax return.
    2. If an Indian resident who possesses an asset or financial interest located outside India, he/she is required to fill up Income Tax return.
    3. If a person receives any income from the sale of a property, he/she is required to fill up the return.

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  • Answer to your question is debatable, as there is no clear guidelines or instructions wherein it has been given that such and such person needs to file return. Although it is clarified that persons whose income falls in taxable slab must file their income tax return.
    Advice to file return is purely on understanding of professionals who differ in their opinion as to who should file a return and when one should not.
    Many professionals advice that one should file a return only when one's income falls in taxable slab or else not.

    While some professional advice that your should file your return irrespective of the fact that your income falls in taxable or exempt slab. Some have even adviced that if you have a PAN, then also you should file your return.

    So, going by prudence one should file his return in following cases:
    1. Income exceeds Rs. 2,50,000/ 3,00,000/5,00,000 for individual upto 60 years, 60 to 80 years and above 80 years, respectively.

    2. If income exceeds the taxable limit but after deductions under section 80C to 80U the income falls below the taxable limit, then also an individual shall filw ITR.

    3. If the total income falls below taxable limit and there is no tax liability, but, there is TDS deducted by any party/bank or financial institution, then too an individual must file ITR to claim refund of TDS deducted.

    4. If the income is below taxable slab and also there is no tax deduction then one can ignore filing tax return.

    Although, it is advisable to file even a NIL tax return, as it may help in future, in case one is looking for securing a personal loan or a home loan from bank or any other financial institution.

    Many salaried employee have this concept that if, tax is deducted and deposited on their behalf by the employer and Form 16 issued to them, then, they do not need to do anything. But this is a serious mistake and can invite notice/intimation from Income Tax Department. Earning income and getting the tax deposited was one part, but filing return and reporting one's income to the Income Tax Department is another part. This must be strictly followed.

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