Who is required to file the IT returns?
While talking to a number of my colleagues and friends who’re salaried, I take into account that majority of them are beneath the affect that as complete tax has already been deducted from their earnings, they’re now not required to file their income tax returns. This is not accurate as discharge of tax liability and the legal responsibility to document your income tax return are two exceptional and awesome liabilities and you need to discharge each the liabilities. In this newsletter i can discuss the prison position approximately individuals who are required to report income tax return.
who is required to file the IT returns?
As per the earnings tax law you’re required to report your profits tax return if your gross overall income exceeds the primary exemption restriction. The fundamental exemption limit at gift is Rs. 2.50 lacs for taxpayers who’re beneath the age of 60 years. For senior residents who are above 60 years but below 80years of age, it’s far three.00 lacs. For tax payer above the age of eighty the restriction is Rs. 5.00 for the monetary year ended 31-03-22016.
The earnings to be considered for this cause is the profits earlier than any deduction beneath diverse sections like Sections 80 C, 80 CCC, 80 CCD, eighty CCG, 80D, 80 DD, eighty DDB, 80E, 80G and eighty GGA, eighty U and 80 TTA and so on. are taken into consideration. those deductions are to be had in recognize of various gadgets like PF, existence coverage premium, tuition price for kids, NSC, contribution to NPS, PPF, home loan compensation, interest on schooling mortgage, medical insurance top rate, lease paid, deductions for investments made beneath Rajiv Gandhi Saving Scheme, deductions for scientific remedy of handicapped established, charges incurred for certain sickness and saving bank account interest and so forth.
So it may happen that the earnings after availing the diverse deductions below chapter thru can also fall beneath the exemption restrict and as a consequence leaving you with no tax liability, you still are required to document your income tax go back. The exemption to be had to salaried personnel from submitting of your go back in case your income did no longer exceed Rs. five lakhs in advance isn’t to be had now.
in case you are a resident for income tax functions, you are also required to report the earnings tax go back in case you have any asset out of doors India or you are a licensed signatory for any account located out of doors India. The ownership of the asset may be prison or even it could be beneficiary simplest. So for any of you who had long gone outside India on deputation or employment and either forgot to close the account or have deliberated decided to maintain the
account will should file earnings tax return even if your aren’t in any other case required to record the return. Likewise even if you have any investments in shares, bonds or mutual fund units of foreign groups, you also are required to report the income tax returns even if your profits is in any other case not taxable. So this provision will cowl the personnel who have obtained shares of overseas protecting corporation as ESOP as a part of their repayment package.
claim for income tax refund
given that TDS is deducted on nearly all the payments and every one does not bother to report form No. 15 G or 15H to get the earnings without deduction of tax at supply, or maybe banks once in a while deducts tax regardless of you having furnished the applicable shape which results into your entitlement for refund. For any refund that you are entitled to does not come to you. you have to make a claim for the same through submitting the profits tax go back.
Carry forward of losses
further to the above precise instances a men and women has to record his return of earnings in case he wants to avail the advantage of bring forward of losses which he is entitled to carry forward and set if off towards taxable income of subsequent years. but for being able to claim the bring ahead of the losses, you want to report the profits tax go back by the due date i.e. 31st July 2016.
So from the above discussion it becomes clean that even though full tax has been deducted out of your income or even in a few cases where you do not have taxable profits and for this reason do no longer have any tax liability, you still want to document the earnings tax return to be on proper facet of the regulation.