ITR filing: If your annual income is up to Rs 2.5 lakh, do you need to file tax?
According to income tax laws, a person is free from tax if his yearly income is less than Rs 2.50 lakh. Such a person is not required to file an income tax return. However, tax experts believe that submitting income tax returns is advantageous even if the yearly income is little.
The deadline for filing your income tax return is coming. The Income Tax Department is issuing reminders to taxpayers through SMS and email to file returns before the deadline. The government is also informing taxpayers about this on Twitter. Is it mandatory for every employee to file an income tax return? Is it required to submit a return even if no tax liability exists?
According to income tax laws, a person is free from tax if his yearly income is less than Rs 2.50 lakh. Such a person is not required to file an income tax return. However, tax experts believe that submitting income tax returns is advantageous even if the yearly income is little. You must file your return for income generated in fiscal year 2021-22 by July 31, 2022. Following that, there will be a penalty for failing to file the return.
If you deducted TDS while having a modest income, the refund would be available only when you file your income tax return. As a result, if their TDS is deducted, it will be beneficial for such persons whose yearly income is less than the tax exemption level of Rs 2.5 lakh to submit a return. According to experts, banks require ITR results when applying for a home loan or any other loan. When ITR results are provided, the bank's confidence in the consumer grows.
If a person has spent Rs 2 lakh on his foreign travel or of any other person, then it is necessary for the user to file the tex. Even if an individual has assets abroad, it is necessary for him to file the tax.
Even if an individual's income is below the threshold, it is best to file the ITR. Filing ITR notwithstanding the Rs 2.5 lakh income restriction will prevent the taxpayer from receiving an automatic non-filing notification from the income tax department. According to experts, a zero ITR may be submitted even if income is less than the criteria for a few years to guarantee that there is no gap year in the tax filing records.