New Delhi: The last date to file an Income Tax Return (ITR) is July 31, 2024 to avoid penalty. Salaried employees with no tax liability are often confused whether they should file Income Tax Return or not. There is a common notion that getting TDS deducted by the employer is enough. Though an employer calculates and deducts tax from employees’ income annually, the necessity of filing an ITR persists even if an employee doesn’t seek a refund.
Who should mandatorily file ITR?
Salaried individuals must file ITR if their total income exceeds the basic exemption limit for the financial year 2023-24 (AY 2024-25), set at Rs 2.5 lakh under the old regime and Rs 3 lakh under the new regime for individuals below 60 years. The deadline for filing is July 31, 2024, for those not subject to income tax audit.
Exceptions to Basic Exemption Limit
There are certain conditions when an individual has to file ITR even if the income comes within the threshold for basic exemption limit. Exceptions to the income exemption limit rule requiring ITR filing include:
Annual savings bank deposit exceeding Rs 50 lakh in one or more accounts.
Business income and deposits surpassing Rs 1 crore in one or more current accounts.
Business turnover exceeding Rs 60 lakh.
Professional income exceeding Rs 10 lakh.
Electricity bill exceeding Rs 1 lakh.
TDS / TCS deductions exceeding Rs 25,000.
Foreign travel spending exceeding Rs 2 lakh.
Ownership of assets in a foreign country or beneficiary of foreign assets.
Forms and Documentation
If TDS is deducted from salary, Form 16 is issued by employers. If not, salary slips or income proofs are necessary for filing ITR. While Form 16 assists in salary income calculation, total income for ITR must consider all earnings during the fiscal year.
Additional Tax Liabilities
Even with TDS deductions, discrepancies can arise if the actual tax liability exceeds deductions. Additional tax payments might be required during ITR filing. Differing TDS rates from multiple employers or other income sources can affect tax liabilities. It’s crucial to rectify any underpayments promptly.
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Income Tax Return 2024: Understanding the nuances of income tax deduction and filing requirements ensures compliance and avoids potential penalties or notices from tax authorities. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
