For the assessment year, 2022-23 or the financial year 2021-22, the deadline for filing an income tax return (ITR) is July 31, 2022. Even if you make less than Rs 2.5 lakh per year, do you still have to file an income tax return? Individuals who are salaried and whose taxable income falls below the threshold for income tax are nonetheless required to file a return of income.
For taxpayers under the age of 60, the baseline tax exemption amount was fixed at Rs 2.5 lakh under the previous income tax regime. The basic exemption limit for elderly folks or those between the ages of 60 and 80 will be Rs. 3 lakhs. The Rs 5 lakh limit is waived for persons above the age of 80. The basic tax exemption ceiling has been set at Rs 2.5 lakh under the new concessional income tax regime, regardless of the age of the taxpayers. There are a number of good reasons why professionals recommend that all taxpayers file their annual income tax returns, including:
Even if your income falls below the exemption threshold, why bother filing an ITR?
There are various benefits to submitting income tax returns even if a person’s income is not taxable.” “CEO and co-founder of Tax2Win Abhishek Soni said. Making the case for submitting an ITR, Soni went on to say that it’s a crucial document to have because it serves as verification of your identification and income when applying for loans. It can also help you claim deductions, carry over losses, and avoid penalties.”
It is also critical to file an ITR so that you can receive a refund for the taxes that your employer withheld from your wages. You cannot get an ITR refund if your employer or any other paymaster has deducted TDS from your paycheck. You should also file tax returns in some circumstances even if your income is below the standard exemption limit “Taxbuddy.com founder Sujit Bangar was quoted as saying.
Even if your income is below the minimum required to submit a tax return for a few tax years, you should nevertheless file a nil income tax return to avoid any gaps in your tax filing records. Automated notices from the tax department are sent from time to time to inquire about the reasons why a tax return has not been filed. In order to avoid this, you need to file a tax return “A partner at Deloitte India, Aarti Raote noted.
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Taxpayers must file an ITR if their gross total income exceeds the basic exemption ceiling, even if their total taxable income does not.
The Income-tax (Ninth Amendment) Rules, 2022, released by the Central Board of Direct Taxes (CBDT) on April 21, 2022, outlines the additional conditions under which filing an income tax return is mandatory even if the individual’s income is below the baseline exemption amount.
These four scenarios necessitate the submission of an income tax return.
If an individual’s total sales, turnover, or gross receipts in the firm surpass Rs 60 lakh in the previous year, he or she must file an income tax return.
2) If a professional’s total gross receipts in the preceding year exceeded Rs 10 lakh, he or she must file an ITR.
It is required to file a return of income tax if TDS or TCS during the year totals Rs 25,000 or more. If an individual’s TDS or TCS total exceeds Rs 50,000 in a financial year, this rule applies to them.
Deposits of Rs. 50 lakh or more in any one or more individual savings bank accounts during the preceding year must be reported on an annual basis.
For the financial year, 2021-22 or the assessment year 2022-23, these new rules will apply to the filing of income tax returns.
Income tax reporting requirements were extended earlier this year by the central government. If you deposit Rs 1 crore or more in your current account, spend Rs 2 lakh or more on international travel, or pay Rs 1 lakh or more on your power bill, you must file an income tax return.
