As the income tax return or ITR forms are released by the Income Tax Department, and with the start of e-filing of returns, it's common for the salaried or those earning an income to have some basic questions about tax returns.
Some of these questions are answered below:
Am I required to file an ITR?
Whether or not individuals have earned an income, they are often unsure whether they are supposed to file an income tax return in India. Some believe that a tax return may not be required in case there is no income. There is also a common misconception that if no taxes are payable, return of income is not required to be submitted.
An income tax return is required to be filed if the gross total income earned by you from April 1, 2014 to March 31, 2015 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. If you are more than 60 years but less than 80 years old in age, this limit is Rs 3 lakh. For those who are more than 80 years old, it is Rs 5 lakh. Therefore, even where no tax has been paid but gross income exceeds the above mentioned limits, a return of income must be filed. This income limit applies to NRIs as well. If they have income in excess of Rs 2.5 lakh from sources in India, they must file a return in India.
What if your total income is less than Rs 2.5 lakh but some TDS (tax deducted at source) was deducted for which you need to ask for a refund? The only way to get a refund is by filing an income tax return. Only the Income Tax Department can issue a refund for TDS deposited to it. So those earning below the income threshold can also file an ITR where they need to seek a refund.
Losses under certain heads of income are allowed to be carried forward only when an income tax return has been filed. Similarly, all companies and firms must file an income tax return irrespective of a loss or income during the financial year. Those who seek jobs outside India or need to travel for some reason may be required by visa authorities to show proof of return. Usually, copies of returns are also sought when a home loan is being sought.
An income tax return must also be mandatorily filed by a resident individual who owns an asset or has financial interest in an entity located outside India, where he/she has a signing authority in a bank account outside India. This is applicable irrespective of whether such resident has a taxable income or not. These requirements are not applicable to NRI or those who are resident but not ordinarily resident.
Am I required to e-file my ITR?
Gone are the days of taking the hassle of filing your returns on paper. A paper return is both cumbersome and prone to error.
However, there are some cases where it is mandatory to e-file your income tax return. Let's take a look at those. If your gross total income exceeds Rs 5 lakh, it is mandatory to e-file your return. Those who are seeking a refund must mandatorily e-file their return. There is a small exception for those who are more than 80 years old and are filing returns using the ITR-1 and ITR-2 forms. They can still file a return on paper and claim a refund. Forms ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7 have to be mandatorily e-filed.
Do I need to submit documents along with my ITR?
The Income Tax Department does not accept any documents with the return form. What is filed now is called an 'annexure-less' return. So you don't need to submit any documents related to deductions, home loans, rent receipts etc. along with your return. This is applicable for both paper and e-filed returns. However, it is important that these documents are kept safely by you should the taxman ask for them. Do maintain a record of all your related receipts and proofs.
Disclaimer: All information in this article has been provided for information purposes andwe are not responsible for the accuracy and completeness of the same.
Some of these questions are answered below:
Am I required to file an ITR?
Whether or not individuals have earned an income, they are often unsure whether they are supposed to file an income tax return in India. Some believe that a tax return may not be required in case there is no income. There is also a common misconception that if no taxes are payable, return of income is not required to be submitted.
An income tax return is required to be filed if the gross total income earned by you from April 1, 2014 to March 31, 2015 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. If you are more than 60 years but less than 80 years old in age, this limit is Rs 3 lakh. For those who are more than 80 years old, it is Rs 5 lakh. Therefore, even where no tax has been paid but gross income exceeds the above mentioned limits, a return of income must be filed. This income limit applies to NRIs as well. If they have income in excess of Rs 2.5 lakh from sources in India, they must file a return in India.
What if your total income is less than Rs 2.5 lakh but some TDS (tax deducted at source) was deducted for which you need to ask for a refund? The only way to get a refund is by filing an income tax return. Only the Income Tax Department can issue a refund for TDS deposited to it. So those earning below the income threshold can also file an ITR where they need to seek a refund.
Losses under certain heads of income are allowed to be carried forward only when an income tax return has been filed. Similarly, all companies and firms must file an income tax return irrespective of a loss or income during the financial year. Those who seek jobs outside India or need to travel for some reason may be required by visa authorities to show proof of return. Usually, copies of returns are also sought when a home loan is being sought.
An income tax return must also be mandatorily filed by a resident individual who owns an asset or has financial interest in an entity located outside India, where he/she has a signing authority in a bank account outside India. This is applicable irrespective of whether such resident has a taxable income or not. These requirements are not applicable to NRI or those who are resident but not ordinarily resident.
Am I required to e-file my ITR?
Gone are the days of taking the hassle of filing your returns on paper. A paper return is both cumbersome and prone to error.
However, there are some cases where it is mandatory to e-file your income tax return. Let's take a look at those. If your gross total income exceeds Rs 5 lakh, it is mandatory to e-file your return. Those who are seeking a refund must mandatorily e-file their return. There is a small exception for those who are more than 80 years old and are filing returns using the ITR-1 and ITR-2 forms. They can still file a return on paper and claim a refund. Forms ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7 have to be mandatorily e-filed.
Do I need to submit documents along with my ITR?
The Income Tax Department does not accept any documents with the return form. What is filed now is called an 'annexure-less' return. So you don't need to submit any documents related to deductions, home loans, rent receipts etc. along with your return. This is applicable for both paper and e-filed returns. However, it is important that these documents are kept safely by you should the taxman ask for them. Do maintain a record of all your related receipts and proofs.
Disclaimer: All information in this article has been provided for information purposes andwe are not responsible for the accuracy and completeness of the same.
No comments:
Post a Comment