Quick Answer: Who Is Eligible For Income Tax Return In India?

Does everyone have to file a tax return?

Not everyone is required to file federal taxes.

Your tax filing status and gross income are the prime determiners of whether or not you need to file.

Even if you don’t need to file, you may want to, because you could be eligible for a tax refund..

Can I file ITR for last 3 years?

1. Filing ITR for Previous Years. According to the Finance Act 2016 amendment, you can file your belated IT Returns anytime on or before 1 year from the end of the relevant Assessment Year (AY). Example, for the AY 2016-17, the timeline to file a belated return was on or before 31 March 2018.

Is it compulsory to file income tax return if we have PAN card?

While any one having a valid PAN is eligible to file IT return even if their income is below exemption limit, it is mandatory for companies and firms to file ITR. Individuals whose taxable income exceeds the maximum amount not chargeable to tax are eligible for income tax return.

Who all should pay income tax?

Who are the Tax Payers? Any Indian citizen aged below 60 years is liable to pay income tax, if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he/she will have to pay taxes to the Government of India.

Does everyone have to file income tax return India?

The Income-tax Act, 1961 was amended via the Finance Act, 2019 to make ITR filing mandatory even if gross total income is below exemption limit if an individual has deposited Rs 1 crore or more in current account, spent Rs 2 lakh or more on foreign travel or paid electricity bill of Rs 1 lakh or more in a particular …

Is filing income tax return mandatory in India?

As per the tax provisions, filing income tax returns is mandatory where the gross total income of an individual is more than Rs 2,50,000. It is common knowledge that every Indian citizen whose gross total income exceeds the taxable limit in a financial year is required to file his/her income tax return (ITR).

What is the minimum income to file income tax return in India?

2.5 lakhs2.5 lakhs (for FY 2018-19) is required to file an income tax return in India.

What income is tax free?

As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: Income up to Rs 2.5 lakh is exempt from tax, 5 per cent tax on income between Rs 250,001 to Rs 5 lakh; 20 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh …

How do I not pay income tax?

How to Reduce Taxable IncomeContribute significant amounts to retirement savings plans.Participate in employer sponsored savings accounts for child care and healthcare.Pay attention to tax credits like the child tax credit and the retirement savings contributions credit.Tax-loss harvest investments.More items…•

Can you file a zero income tax return?

Filing a nil return is no different from filing a regular income tax return. Enter your income details and deductions. Income tax is computed and you will be shown that you have no tax due. Submit your return to the Income Tax Department.

Is it compulsory to file ITR for NRI?

Am I Required to File My Income Tax Return in India? NRI or not, any individual whose income exceeds Rs. 2,50,000 is required to file an income tax return in India.

Who is exempt from filing income tax return in India?

According to the amendment, salaried individual with a taxable income of less than Rs. 5 lakh will not have to file income tax returns in the current assessment year. As such, individuals with a total taxable salary income of less than Rs. 5 lakh & bank interest upto As.

What is the income tax refund?

A tax refund is a reimbursement to a taxpayer of any excess amount paid to the federal government or a state government. Taxpayers tend to look at a refund as a bonus or a stroke of luck, but it most often represents an interest-free loan that the taxpayer made to the government. In most cases, it is avoidable.

What income is not taxable in India?

Taxpayers and Income Tax SlabsIncome RangeTax rateTax to be paidUp to Rs.2,50,0000No taxBetween Rs 2.5 lakhs and Rs 5 lakhs5%5% of your taxable incomeBetween Rs 5 lakhs and Rs 10 lakhs20%Rs 12,500+ 20% of income above Rs 5 lakhsAbove 10 lakhs30%Rs 1,12,500+ 30% of income above Rs 10 lakhs

Is it compulsory to file ITR for govt employees?

It’s not compulsory for government employees to file income tax returns if their income is lower than the taxable limit as per income tax rules. However, it should be made compulsory, irrespective of tax rules, for ALL government employees to file income tax returns.

Who is eligible for tax return?

If you are less than 60 years of age and your total annual gross income exceeds Rs. 2,50,000. If you are a senior citizen i.e. 60 years or above and below 80 years of age, and your total annual gross income exceeds Rs3,00,000.

What happens if I dont file ITR?

If you file your ITR after the deadline, then a late filing fee will be levied. … The fee payable will increase to Rs 10,000, if the tax return is filed between January 1 and March 31 of the relevant AY. However, if the total income of the taxpayer is less than Rs 5,00,000, the fee amount shall not exceed Rs 1,000.

Can I file ITR for last 5 years?

As per the Finance Act 2016 amendment, you can file your previous income tax returns anytime on or before 1 year from the end of the relevant Assessment Year (AY). However, you cannot file the ITR for the last three years at a stretch i.e in one year.