Even if your earning in a year is less than the limit of tax exemption, if TDS or TCS of Rs 25000 is deducted then you will have to file ITR. For senior citizens, the limit of TDS or TCS has been kept up to Rs 50,000.
If your TDS (TDS) or TCS is Rs 25,000 or more, then file income tax return (ITR Filing) will have to do. The government has made this rule necessary. This limit of TDS or TCS is for one financial year. year’s earnings irrespective of the basic exemption limit (Basic Exemption LimitITR filing has been made mandatory if TDS or TDS is up to or more than Rs 25,000 in a financial year. For senior citizens, the limit of TDS or TCS has been kept up to Rs 50,000 or more.
If the TDS or TCS of a senior citizen is less than Rs 50,000 in a financial year, then there is an exemption from filing ITR. If it is more than this, then the tax return will have to be filed. Apart from this, ITR filing has been made mandatory for a person who has deposited Rs 50 lakh or more in a savings account in a year. In this case the earning limit will not matter. That is, whatever is your earnings in the year, if Rs 50 lakh or more is deposited in the savings account, then it will be mandatory to file the return.
where will the rule apply
According to a report in ‘Economic Times’, a seventh provision has been added to section 139 by the Finance Act, 2019, which specifies the rules for ITR filing. In this provision, it has been made mandatory to file tax return according to TDS or TCS, keeping the basic exemption limit aside. According to the rules, if Rs 1 crore or more is deposited in the current account in a year, more than 2 lakh is spent on foreign travel or more than 1 lakh electricity bill is paid, then it is necessary to file the return. Even if your earnings are less than the tax exemption limit.
what will be the benefit of this
For those who will file ITR for the financial year 2021-22, this rule is applicable for them. Due to this rule, such taxpayers will also come under the purview of ITR filing whose earnings are less than the income tax exemption limit. Those people whose taxable income is less than the basic exemption limit, but who do large amount of transactions will come under its effect. Till now it was exempted. This will see a significant increase in the number of people filing ITR in the country. Now such people will also have to file tax returns, who used to get exemption by showing low income, but used to do transactions of large amount in banks.
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