The last date for filing income tax returns for financial year 2023-24 and assessment year 2024-25 is approaching. In such a situation, people who come under the tax slab and have not yet filed their income tax return can file it on time. Those whose income falls outside the tax slab need not file a return.
Generally, if there is no tax liability, taxpayers think that it is not necessary for them to file an income tax return, but this is not the case. In such a situation, let's know if your annual income is less than 7 lakh rupees, should you file a tax return or not?
Is it necessary to file ITR on income below Rs 7 lakh?
People who opted for the old tax system are getting the benefit of tax exemption on annual income of Rs 5 lakh, according to the new tax system, no tax will have to be paid on income of Rs 7 lakh. Suppose your income is Rs 7.50 lakh, then in such a case you do not need to pay income tax after the standard claim of Rs 50,000, but in such a case you need to file an income tax return.
Along with this, you are getting the benefit of maximum tax relief of Rs 12,500 under the old tax system. While in the new tax system this discount is 25,000 rupees. In both these cases, you have zero tax liability, but you are required to file an income tax return under certain circumstances. In most cases, if there is no tax liability, taxpayers think that it is not necessary for them to file an income tax return, but this is not the case.
Who are required to file ITR?
- If your total income falls within the tax slab without any deductions, you are required to file an income tax return.
- As per the old tax regime, ITR is required to be filed for senior citizens above 60 years of age whose annual income exceeds Rs 2.50 lakh.
- Senior citizens between 60 to 80 years of age whose annual income is more than 3 lakh rupees are required to file ITR.
- Senior citizens above 80 years of age whose income is more than 5 lakh rupees are also required to file income tax returns. Taxpayers with bank deposits of more than 50 lakhs are required to file income tax returns.
- If your business income is more than 10 lakh rupees in a financial year, in such a case it is necessary to file an income tax return.
- Whose TCS/TDS is Rs. 25,000 is more than required to file ITR.
- If you are deriving income from foreign assets, in such a situation it is necessary for you to file an income tax return.
- If you spend Rs. If you spend more than 2 lakhs, you need to file an income tax return.
This can be a huge loss if you don't file ITR
It may be noted that the date for filing income tax return without penalty for FY 2023-24 and assessment year 2024-25 is 31 July 2024. If you file ITR after July 31, you will have to pay a penalty of Rs 1000 on annual income of Rs 5 lakh. Whereas on income of more than 5 lakh rupees you have to pay a penalty of 5000 rupees.
