ITR Filing AY 2022-23: The final date of submitting earnings tax return (ITR) for the evaluation yr 2022-23 or monetary yr 2021-22 is July 31, 2022. Do it’s important to file an earnings tax return even in the event you earn lower than Rs 2.5 lakh a yr? Every salaried particular person should file the return of earnings, even when his or her taxable earnings falls beneath the brink degree from which earnings tax is levied.
Under the previous earnings tax regime, the fundamental tax exemption restrict has been fastened at Rs 2.5 lakh for taxpayers beneath 60 years of age. For senior residents or these between 60 and 80 years of age, the fundamental exemption restrict shall be at Rs 3 lakh. For those that are 80 years of age and above, the exemption restrict of Rs 5 lakh. Under the brand new concessional earnings tax regime, the fundamental tax exemption celing has been fastened at Rs 2.5 lakh, regardless of the age of the taxpayers. However, specialists counsel all taxpayers to file their earnings tax returns for numerous causes.
Why Should you File ITR Even in case your Income is Below Exemption Limit?
“If a person’s income is not in the taxable bracket, filing income tax returns still have numerous advantages,” stated Abhishek Soni, CEO & co-founder, Tax2Win. Explaining the advantages of submitting ITR, Soni added, “an income tax return holds immense legal value as it acts as a legal identity proof, income proof, an important document while applying for loans, can help you claim deductions, carry forward your losses, and avoid several penalties.”
Moreover, it is very important file ITR to assert refund of tax deducted at supply (TDS) by the employers. “One can’t claim ITR refund against the TDS deducted by its employer or by any other paymaster. So, if your income is below basic exemption limit, then also it’s beneficial to file income tax return in certain situations,” talked about Sujit Bangar, founder at Taxbuddy.com.
“It is advisable to file a nil income tax return even when for a couple of tax years the income is below the minimum income threshold that mandates tax return filing to ensure that there is no gap in the tax filings records. At times there are automated notices sent by the tax department asking for reasons why tax return is not filed. Hence filing a return will avert these,” defined Aarti Raote, associate at Deloitte India.
If gross complete earnings is greater than primary exemption restrict even when complete taxable earnings will not be, taxpayers should file ITR.
On April 21, 2022, the Central Board of Direct Taxes (CBDT) issued a notification — the Income-tax (Ninth Amendment) Rules, 2022 — to say the extra circumstances the place it’s obligatory to file earnings tax return even when the person’s earnings is lower than the fundamental exemption restrict.
Income Tax Return Filing Must in these Four Conditions
1) An particular person has to file earnings tax return if his complete gross sales, turnover, or gross receipts within the enterprise exceeds Rs 60 lakh throughout the earlier yr
2) If complete gross receipts in career exceed Rs 10 lakh throughout the earlier yr, the particular person must file ITR.
3) If TDS or TCS throughout the yr is Rs 25,000 or extra, it’s necessary to file a return of earnings tax. For senior residents, this rule shall be relevant if the people mixture TDS or TCS is Rs 50,000 or extra a monetary yr.
4) The deposit in a number of financial savings financial institution accounts of the particular person, in mixture, is Rs 50 lakh or extra throughout the earlier yr, it’s a should to furnish earnings tax return.
These new guidelines shall be relevant for submitting of earnings tax return for the monetary yr 2021-22 or evaluation yr 2022-23.
Earlier in 2019, the central authorities had widened the income-tax submitting standards. It is necessary to file earnings tax if the particular person deposits Rs 1 crore or extra within the present account; spend Rs 2 lakh or extra on international travels, pay Rs 1 lakh or extra on electrical energy invoice.