Is filing the Income Tax Return compulsory?

As an Individual you are required by law to file your Income Tax Returns, if your total income without allowing deductions (such as Section 80C etc) exceeds the basic exemption limit.

For Assessment Year 2012-13, the basic exemption limits are the following:

   For Men below the age of 60, the exemption limit is Rs. 1,80,000.

   For Women, below the age of 60, the exemption limit is Rs. 1,90,000.

   For Senior Citizens, whose age is between 60 years to 80 years, the exemption limit is Rs. 2,50,000. This is identical for men and women.

   For Super Senior Citizens, of the age of 80 years or more, the exemption limit is Rs. 5,00,000.

What does Total Income without allowing deductions (such as Section 80C etc) actually mean?

Let’s say, your gross total Income is Rs. 2,00,000. You have paid Rs. 50,000 in LIC premium for claiming deduction under Section 80C. Your Taxable Income is Rs. 1,50,000 (Rs. 2,00,000 - Rs. 50,000). The tax payable on Rs. 1,50,000 is Zero.

However, even in this situation, you are required to file your Income Tax Return as your gross total Income exceeds the basic exemption limit of Rs. 1,80,000. (assuming you are not a senior citizen).

Exemption for filing Income Tax Return for Salaried Employees

For the Assessment Year 2012-13, there is an exemption from filing the Income Tax Return for Salaried employees, subject to the following conditions. 

   Your Total Income after deductions (such as Section 80C etc) is upto Rs. 5,00,000.

   Income other than Salary should be only from Saving Bank Interest, upto Rs. 10,000. If you have any other source of Income like House Property, Capital Gain, or even interest from fixed deposits, you will have to file your Income Tax Return.

   You must declare this Interest Income from the Saving Bank to the Employer. The employer then has to deduct the TDS taking into account your Interest Income.

   If you have a refund due, you need to your file your Income Tax Return to claim this refund.

This exemption is difficult to get in actual practice. You will most likely have to file your Income Tax Return.

This is because, you must declare your Interest Income to your employer before 31st March of the Financial Year. But in most cases, the Bank issues the Interest statement after 31st March. So it is virtually impossible to report the Bank Interest to the employer in time.

Compulsory filing of Income Tax Returns if you have foreign assets.

For the Assessment 2012-13, it is mandatory to file your Income Tax Return if you have any foreign assets. Even though you may not have any taxable Income.

When is e-filing your Income Tax Return compulsory?

For the Assessment year 2012-13, e-filing of the Income Tax Return has become compulsory for the following cases:

   If your Total Income exceeds Rs. 10 Lakhs, then you must e-file your Income Tax Return.

   If you own foreign assets, you must e-file.

I have paid all my taxes, do I still need to file my Income Tax Return?

As explained above, the law has placed an obligation on you to file the Income Tax Return even if you have no tax due.

ClearTax helps Individuals prepare and file their Income Tax Returns online in India.

Latest News

  • Sensex rises, snapping two-session losing streak
    Sensex rises, snapping two-session losing streak

    Indian shares rose on Thursday, snapping a two-session losing streak, helped by auto and energy stocks while hopes parliament would consider a key reform on a goods and services tax also boosted sentiment. ... …

  • GST, EU stimulus hopes buoy markets; Sensex up 210 points

    Mumbai, Nov 26 (IANS) Heightened chances of key economic legislations getting passed during Parliament's winter session coupled with hopes of a stimulus package in European Union buoyed the Indian equity ... …

  • Indian gold demand seen falling to 8-year low in festive quarter

    India's gold buying in the key December quarter is likely to fall to the lowest level in eight years, hurt by poor investment demand and back-to-back droughts that have slashed earnings for the country's millions of farmers. December quarter demand could fall to 150 to 175 tonnes, said Bachhraj Bamalwa, a director with the All India Gems & Jewellery Trade Federation, from 201.6 tonnes a year ago and a five-year average for the quarter of 231 tonnes, according to World Gold Council data. The …

  • Euro on shaky ground as ECB easing talk mounts, European stocks up
    Euro on shaky ground as ECB easing talk mounts, European stocks up

    The euro slipped back towards seven-month lows, bond yields fell and European shares gained on Thursday as talk of aggressive stimulus from the European Central Bank next week grows. European shares rose 0.25 percent in early trade, while MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent. The euro remained under pressure a day after euro zone central bank officials told Reuters that they are considering options such as staggered charges on banks hoarding cash and …

  • `Insurers are easier target for tax department than auto dealers'

    Chennai, Nov 26 (IANS) The department of revenue is going after the non-life insurance companies for wrongly availing themselves of Cenvat credit instead of automobile dealers as it is easier to target the former in terms of numbers, a senior official of an industry body said. The Chennai zonal unit of the finance ministry's Directorate General of Central Excise Intelligence had in August issued summons to general insurers for wrongly claiming Cenvat credit of Rs.1,200-2,500 crore ($180 …

  • Reached 4 million car sales milestone: Hyundai Motor India

    Chennai, Nov 26 (IANS) South Korean Hyundai Motor Company's Indian subsidiary on Thursday said it has achieved the milestone of selling four million cars in the country. "Hyundai today is a 10-product strong brand with class leading products ranging from Eon to Santa Fe. Hyundai has since inception focussed on 'Make in India' products, made for the world," Y.K. Koo, managing director, was quoted as saying in the statement issued by Hyundai Motor India. …

  • Prospects of GST's passage buoy markets; Sensex gains 151 points

    Mumbai, Nov 26 (IANS) Heightened chances of key economic legislations getting passed during the winter session buoyed the Indian equity markets during mid-afternoon trade on Thursday. Furthermore, hopes of a stimulus package in European Union and better-then-expected outcome of the derivatives expiry cheered investors. The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) gained 151 points or 0.59 percent. …

  • Hyundai achieves four million domestic sales in India

    New Delhi, Nov 26 (IANS) Automobile manufacturer Hyundai Motor India on Thursday announced that it has achieved cumulative domestic sales of four million vehicles in the Indian market. "Hyundai today ... …


  • IIM Ahmedabad is the best B-school in 2015

    The 54-year-old institute is not only drawing on its traditional strengths, but is also taking wings to meet the demands of the emerging new world of business. …

  • Change is only constant at these four B-schools

    It is the best of times for B-school students. And if they happen to be at the top four schools after IIM-Ahmedabad - IIM Calcutta, XLRI, SP Jain Institute of Management & Research and MDI- it is certainly ... …

  • India's best management schools for 2015

    The eagerly-awaited issue of Business Today is here. Find out which B-school has topped the list this time. …

  • Built To Last

    Six lesser-known infrastructure companies have prospered despite adverse economic circumstances. …

  • Sweeten your e-Deals

    Shopping online this festive season can be fun if you read the fine print carefully. …

  • Exercise Caution

    The IPO market is buoyant with a healthy line-up of issues, but investors should be cautious. …

  • No Headline

    Six lesser-known infrastructure companies have prospered despite adverse economic circumstances. …


  • Most Actives
    Most Actives
    NamePriceChange% Chg
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg


Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
to view quotes in your portfolios.

Yahoo Cricket