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.  www.cleartax.in

Latest News

  • India will make corporate bonds part of fundraising for projects, says …
    India will make corporate bonds part of fundraising for projects, says …

    India will make it compulsory for companies to raise funds via corporate bonds for some projects such as infrastructure, said Chandan Sinha, an executive director at the Reserve Bank of India (RBI), on Tuesday. "We are already talking of moving the corporates towards bonds financing. There would be a compulsory recourse for part financing of their projects," he said at a conference on corporate bonds in Mumbai. …

  • EXCLUSIVE: Westinghouse to relocate planned nuclear plant to Andhra Pradesh, …
    EXCLUSIVE: Westinghouse to relocate planned nuclear plant to Andhra Pradesh, …

    Toshiba Corp's Westinghouse Electric will relocate a planned project to build six nuclear reactors in India, officials said, clearing a land acquisition hurdle and bringing the first deal stemming from a U.S.-India civil nuclear accord struck more than a decade ago closer to reality. The six AP-1000 reactors would be built in Andhra Pradesh, after the original site proposed for the multi-billion-dollar project, in Prime Minister Narendra Modi's home state of Gujarat, faced local opposition. …

  • Malaysia's finance ministry appoints new 1MDB board of directors

    Malaysia's finance ministry announced on Tuesday a new board of directors for scandal-hit 1Malaysia Development Berhad , after the previous board was dissolved following a parliamentary inquiry into the ... …

  • Dismay in oil Twitterverse upon popular U.S. crude trader's exit

    Oil traders keep a low profile. Eric Rosenfeldt, who goes by the Twitter handle of Oil Merchant or @energyrosen, had attracted more than 8,000 Twitter followers for his quirky and candid opinions on the crude oil market. Rosenfeldt does not identify himself or his company on his Twitter profile, but he previously confirmed his identity to Reuters. …

  • Videocon launches 4G VoLTE-enabled smartphone at Rs.10,000

    New Delhi, May 31 (IANS) Consumer electronics and home appliances major Videocon on Tuesday launched Krypton3 V50JG smartphone with next-age 4G VoLTE network support at Rs.10,000. The smartphone features ... …

  • Gold inches up but heading for biggest monthly decline in six

    Gold edged up on Tuesday after falling to a three-and-a-half month low in the prior session but the yellow metal remained on track for its biggest monthly decline since November on the back of broad strength in the dollar. Spot gold was up 0.6 percent at $1,212.46 per ounce as of 0630 GMT. Spot silver was also headed for its biggest monthly loss since September 2014, down 9.8 pct, which is also its first such decline this year. …

  • Nestle, on health kick, moves into milk allergy testing

    Nestle, the world's biggest food company, is stepping up its push into medicine with a global deal worth up to 100 million euros ($111 million) to develop and market an experimental milk allergy test for infants. The Swiss group will pay DBV Technologies 10 million euros upfront for rights to its skin patch test for cow’s milk protein allergy, with the balance depending on successful development, the two companies said on Tuesday. The deal with the Franco-American company underscores Nestle's …

  • Asia shares firm but set for near 2 percent monthly loss

    SINGAPORE/TOKYO (Reuters) - Asian shares recovered from a wobbly start on Tuesday, but remained on track for a monthly loss, while the dollar edged away from recent peaks scaled on expectations the U.S. Federal Reserve will raise interest rates as soon as next month. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.6 percent, but looked set to end the month down 1.8 percent on jitters over Fed rate hikes and disappointing data out of China. Japan's Nikkei stock index …

DON'T MISS

  • The Rs 80,000 crore milk business is on a tear

    If you thought that all the action in business was concentrated around the e-commerce sector, you could not be more wrong. The unlikely category of milk and dairy products has been seeing some of the most ... …

  • Charged up

    Reliance Jio's battle with other cellular operators over spectrum usage charges is set to escalate. …

  • Cracking the Code

    HackerRank is helping companies recruit coding champions through online tests. …

  • Poor Prediction

    A Niti Aayog presentation says poverty in India could be wiped out by 2032. Is it possible? …

  • Missing in Action

    Villages adopted by Gandhis make little progress. …

  • The VillageEconomy

    Inside: Model villages 68 / How India failed its poor 76 …

  • Hardly Adarsh

    Saansad Adarsh Gram Yojana, PM's pet project, has the potential to kick-start the rural economy, but is going nowhere if we go by the results so far. …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    747.00-0.25-0.03%
    HCLTECH.BO
    16.00-0.25-1.54%
    SUZLON.BO
    357.80+1.20+0.34%
    ITC.BO
    67.55-0.10-0.15%
    SPICEJET.BO
    514.90+1.60+0.31%
    AXISBANK.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    20.59+3.43+19.99%
    FILTRA.BO
    86.15+14.35+19.99%
    GOKEX.BO
    19.90+3.30+19.88%
    NHCFOODS.BO
    13.16+2.14+19.42%
    GOKULAGRO.BO
    13.95+1.96+16.35%
    7SEAS.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    36.00-9.00-20.00%
    RJBIOTECH.BO
    11.10-2.75-19.86%
    VIKASECO.BO
    57.00-11.10-16.30%
    SATHAISPAT.BO
    30.05-5.85-16.30%
    RTSPOWR.BO
    42.70-8.05-15.86%
    METALFORGE.BO

QUOTES

 
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.
 
Sign-in to view quotes in your portfolios.