Who should file ITR for FY 2020-21? ITR filing extends till 30 September
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Since tax is deducted from most of the payments, recipient of such income like salaries and interest on bank deposits are under the impression that they are not required to file their income tax return (ITR). Payment of tax and filing of an ITR are two separate and distinct legal obligations independent of each other. Discharge of one does not imply discharge of another. Since the extended due date of filing of ITR, 30th September, is fast approaching.
One must file an ITR in case aggregate of all his income exceeds the basic exemption limit. There are different basic exemption limits applicable based on age. All those who are below 60 years have to pay tax only if their taxable income exceeds Rs. 2.50 lakhs. Those over 60 but below 80 enjoy exemption upto Rs. 3 lakhs. Very senior citizens who have already crossed 80 years enjoy free income upto Rs. 5 lakhs every year.
While arriving at the above threshold limits for filing the ITR various deduction available under Chapter VIA like under Section 80C, 80 CCD, 80D, 80G 80TTA, 80 TTB etc. must be ignored. Likewise amount of exemption claimed in respect of long term capital gains under Section 54, 54F, 54EC etc. for reinvestment in residential house or capital gains bonds though exempt from payment of tax but have to be added to your taxable income to determine the threshold limit for ITR filing.
For example, in some of the cases though your gross total income may exceed the basic exemption limit, making you liable for filing of ITR but due to various deductions, the taxable income may come down below 2.50 lakh and thus no liability to pay any tax. Likewise, you may not have any tax liability if your net taxable income does not exceed five lakhs due to rebate available under Section 87A but you may still have to file an ITR.
Bottomline: Irrespective of whether your employer has deducted tax at source (TDS) on your salary or you have paid tax on your own, you should file your income tax return (ITR) if you fit certain criteria.
ITR, Income tax filing, TDS, ITR vs TDS, Income, Employee
