We go through a few key points in respect of the liability to file Income
The limit varies w.r.t the age of the person; Rs.
2,50,000 for people aged upto 60 years; Rs. 3,00,000 for senior citizens (60-80
years age); Rs.5,00,000 for super senior citizens (above 80 years age).
“Income” is a term with wide spectrum; for
salaried personnel it denotes all that is received from an employer in cash,
kind or as a facility is considered as income; for a businessman, his net
profits will constitute income; income may also flow from investments in the
form of Interest, Dividend, and Commission etc.
Classification of all income earned by people are
made into income from salary, income
from house property, income from business or profession, income from capital
gains and income from other sources.
The liability arises on the basis of the income
amount before deducting any amount under the exemptions under the Act.
Even if the amount after statutory deductions come
under the limit cited above, you must file ITRs if the amount before the
deductions bring you within the purview.
The tax slab within which you fall depends on
the level of income you earn; it is 5% for income upto Rs.5 lakhs, 20% for
income falling between Rs. 5,00,001-Rs.10,0000; and 30% for income above Rs.
For salaried personnel, Income Tax is deducted at source, but the liability to
file Returns to the IT Dept. is not absolved.
If you are eligible for any refund of the tax
amount that was deducted at source, after considering the exceptions that you
are entitled to avail, the same is also to be detailed in the IT Return;
following which if the Authority is satisfied that you have paid more tax than
you are supposed to, then the refund process will be initiated.
The deductions permitted on taxable income
include contribution towards PF, NPS, PPF; payment of School fee of children;
premium for life and health insurance; purchase of NSC; home loan repayment;
rent paid; interest on saving bank account, etc.
IT Returns can be filed online on the Govt
by following the simplified procedures.
Filing of IT Returns is not just a statutory duty,
but also a part of availing your rightful refund; so shed the procrastination
and go ahead to file your Returns if you haven’t already!