Every salaried person should file ITR even if the income is less than the prescribed limit for tax. In some cases it becomes necessary
ITR Filing AY 2022-23: The last date to file Income Tax Return (ITR) for assessment year 2022-23 or FY 2021-22 is January 31, 2022. In such a situation, the question may arise in the minds of some people that is there a need to file ITR if the annual income is less than Rs 2.5 lakh? Every salaried person should file ITR even if the taxable income is less than the prescribed limit.
What does the old income tax regime say
In the old income tax regime, the tax exemption limit for taxpayers below 60 years of age has been fixed at Rs 2.50 lakh. On the other hand, the basic exemption limit for senior citizens i.e. people in the age group of 60 to 80 years is Rs 3 lakh. The tax exemption limit on age above 80 years is Rs 5 lakh. However, experts are of the view that all taxpayers should file ITR due to various reasons.
Why should ITR be filed even if the income is less than the prescribed limit?
Tax2Win CEO and cofounder Abhishek Soni said, “There are many benefits of filing income tax return even if an individual’s income is outside the tax bracket. An ITR has a lot of legal importance, as it acts as an important document of legal identity, proof of income. This comes in handy while applying for a loan. This can help in claiming deduction. Also it has many other benefits as well.
Apart from this, ITR is required to be filed for claiming refund of TDS deposited by the employers.
In this situation it is necessary to file ITR
The Income Tax (Ninth Amendment) Rules, 2022, a notification issued by the CBDT on April 21, 2022, mentioned some additional conditions where it is mandatory to file ITR even on income below the basic exemption limit. Here are the four conditions…
- If the total sales or total receipts of your business during the previous year exceeds Rs.60 lakhs.
- If your total income from profession during the previous year exceeds Rs.10 lakh.
- If your TDS or TCS is Rs 25,000 or more during the year. You have to claim TDS or refund. For senior citizens, this rule will be applicable when the TDS in the financial year is Rs 50,000 or more.
- If you have deposited more than Rs 50 lakh in one or more savings accounts or Rs 1 crore in current account.
