Is it compulsory to file income tax return?
As per the income tax laws in India it is absolutely mandatory to file your tax returns if you are an individual taxpayer. However, this is only applicable only if the annual income of the person in question is within the limit that can be taxed. There are a few things that need to be kept in mind in this context though. The tax exemption limit for men who are younger than 60 years is lower compared to men who are older than the said age mark. A similar ruling also applies in case of ladies who are on either side of 60 years. Compared to men however, on a general basis, the exemption levels are higher for ladies in the age group under 60 years.
However, the limits of exemption from income tax are similar for senior citizens if their ages are between 60 and 80 years. The exemptions only increase for people who are older than 80 years or in that age group. Indian tax laws also provide certain tax exemptions that have been mentioned in Section 80C. There are some exemptions where the Indian government permits income taxes to be left out.
For example if someone has put his or her money in premiums for the Life Insurance Company or other nationalized insurers who have been recognized by the Indian government for tax saving purposes then the amount invested can be deducted from the taxable income of a person. Even if someone’s taxable income is found to be zero an income tax return has to be filed. However, if someone has a substantial amount even after deductions it needs to be included in the tax return.
If someone earns from any other source, with the exception of interest accrued from savings accounts then it has to be included in the income tax return. Following are some sources that may be mentioned in this regard:
· Income from house property
· Interest received from fixed deposits
· Capital gains
It is also useful to file for a tax return in case someone is supposed to receive a refund. It is also mandatory that someone, who has assets outside the country, files an income tax return. This is applicable even if the person in question does not receive any taxable income from the same. Even if a person has paid all his or her taxes it is essential to file a tax return of the same as a form of keeping a record.
However, there is a certain slab beyond which it becomes mandatory to file for income tax returns – there cannot be any exceptions to the same under any circumstances whatsoever. There are also limits on the date by which the payment needs to be made.
In case of people who are thinking of e-filing their taxes it needs to be remembered that there is a definite date for the same as well. For this the last date in the 2013-14 fiscal is July 31, 2014 and it is important that all the necessary documents are kept ready so that the entire process goes smoothly. In the last couple of years e-filing has made things more convenient than before. For people who are earning in excess of INR 5 lakh a year it is mandatory to file their tax returns online.
However, from this year onwards there have been some changes in the tax return form and the taxpayers need to be aware of the same while filing their returns. The changes in tax form are a consistent feature of these and take place almost every year. In the new form first time home buyers will be able to claim deduction as per Section 80EE of the Income Tax Act.