Income Tax Return: According to tax experts, if the total annual income of a tax payer is more than the income tax exemption limit, then it is necessary for him to file a return.
Income Tax Return: The filing of income tax returns for the financial year 2023-24 has started. This time the last date for filing tax returns is 31st July. Under Section 87A of the Income Tax Act, 1961, annual income up to Rs 5 lakh in the old tax regime and Rs 7 lakh in the new tax regime is tax free. At the same time, it is mandatory to pay income tax for those with more income than this. Now the question arises that if your annual income is less than Rs 7 lakh, is it necessary to file an income tax return? According to tax experts, if a person’s annual income is more than Rs 3 lakh, then it is necessary to file a return. However, he will not have to pay any tax. There is a provision of zero tax on income up to Rs 7 lakh.
Who should file ITR?
According to tax experts, if the total annual income of a tax payer exceeds the income tax exemption limit, then it is necessary for him to file a return.
The exemption limit for different categories in the Old Tax Regime for the financial year 2023-24 is as follows:
- Individuals below 60 years of age: Rs 2.5 lakh
- Individuals above 60 years of age but below 80 years of age: Rs 3 lakh
- Individuals above 80 years of age: Up to Rs 5 lakh
- At the same time, in the New Tax Regime, the income tax exemption limit has been fixed at Rs 3 lakh for taxpayers of all ages.
Let’s understand with an example:
Example 1: Suppose your total taxable income is Rs 4.25 lakh. Since this income is less than Rs 5 lakh or Rs 7 lakh depending on the tax regime you choose, you will not have to pay any income tax as you will get tax exemption under section 87A. However, you still need to file ITR as your gross total income exceeds Rs 2.5 lakh under the old tax regime and Rs 3 lakh under the new tax regime.
Example 2: Suppose you are a salaried individual and your gross taxable income is Rs 7.5 lakh and you can claim a standard deduction of Rs 50,000. After all deductions and exemptions you will not have to pay any income tax; however, you will still need to file ITR.
