- What is income tax return?
- Who should file a return?
- Where one can file the return?
- Benefits of filing the return?
The income tax return is an official document that income tax payers are required to complete to state income amounts, deductions, contributions and related financial information for tax purposes.
Who shall furnish the income tax return?
The Return of Income (under section 139 of income tax act)-
- is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the board in this behalf; or
- is the owner or the lessee of a motor vehicle other than a two wheeled motor vehicle; or
- is a subscriber to a cellular telephone not being a wireless in local loop telephone; or
- has incurred expenditure for himself or any other person on travel to any foreign country; or
- is the holder of a credit card, not being an “add on” card, issued by any bank or institution; or
- is a member of a club where entrance fee charged is twenty five thousand rupees or more,
shall furnish a return of his income during the previous year, on or before the due date in the prescribed form and verified in the prescribed manner .(section 139 of Income Tax Act)
A person needs to file the income tax return if his or her income exceeds the basic exemption limits. The revised new income tax slabs and rates are as follows:
Up to Rs. 150,000 Nil Rs.150,001 to Rs.300,000 10 per cent Rs. 300,001 to Rs. 500,000 20 per cent Rs.500.001 and above 30 per cent
In case of a woman assessee the exemption limit is up to Rs. 180000 from Rs. 145,000 whereas senior citizens will have exemption limit of 225,000 from 195,000.
An additional deduction of Rs. 15000 under section 80D is given to an individual who is paying the medical insurance premium of his/her parents.
The filing of return can be done anywhere in the country, at IT offices or at the post offices as the process now is centralised. It can be done through online facilities.
Filing return is mandatory above these limits, for a salaried person who has no other source of income and for whom whose tax has been deducted at source.
Benefits of filing an income tax return:
- When you apply for a loan in a bank, they demand the income tax return document.
- At the time of investment the financial institutions ask for the income tax return documents.
- If you want to claim the tax refund for the tax deducted at source your Income Tax return document becomes very important.
- As it is mandatory to file the income tax return, it will become a trouble for you in future if you don’t file.
- If you fail to file the return, the IT department will impose a penalty on the defaulter. To avoid the penalty it is advisable to file the return.
So file the returns in time. It is advantageous anyway and be relaxed as it is the right thing to do.