If your income is less than Rs 7 lakh and you pay no income tax, should you submit an ITR?
Income tax return: If a taxpayer's income surpasses the basic exemption threshold or if they have engaged in specific activities, they must file an ITR. According to experts, the majority of taxpayers believe that filing an ITR is not required if there is no tax due. But this isn't always the case. To find out more about submitting an ITR, read this.
You will need to file an income tax return (ITR) if your gross taxable income is more than the basic exemption level or if you have engaged in specific activities. That being said, this does not imply that income tax is due. This is because, under section 87A of the Income Tax Act of 1961, you can receive a tax rebate provided your net taxable income is less than Rs 5 lakh (under the previous tax regime) or Rs 7 lakh (under the new tax regime).
Under the previous tax system, you were eligible for a maximum tax refund of Rs 12,500; under the new tax system, that amount was Rs 25,000. Therefore, if your income is within the designated ranges, you are not required to pay any income tax. You must therefore file an ITR even if your tax burden is reduced to zero (as a result of the tax rebate).
Co-founder and CEO of Taxspanner.com Sudhir Kaushik adds, "Generally, taxpayers have a mis-understanding that if tax is not payable then filing of ITR is also not mandatory."
For the current assessment year, the deadline for reporting taxes is drawing near. For those who are exempt from doing an income tax audit, the deadline for filing an ITR is July 31, 2024, for the fiscal year 2023–2024 (AY 2024–25). When filing an ITR becomes required, there are additional requirements in addition to income.
What's Your Reaction?
