ITR filing last date for the financial year 2022-23 and assessment year 2023-24 is July 31, 2023. Every earning individual or firm in India is liable to disclose all the financial details to the Income Tax Department through the process of ITR filing. However, few taxpayers are confused about whether to file Income Tax Return or not if they have zero tax liability. Few think that it is alright not to file ITR when they don’t have any tax liability.
Do You Need to Complete ITR Filing?
As per financial experts, if an individual earns below the threshold limit set by the Government in a financial year and the TDS has been deducted, then they can get a refund from filing ITR. In the same way, “if a person has an annual income below the threshold limit but he or she has invested in mutual funds, equities, bank fixed deposits, etc., then the net income of the person would include income from all sources and if it exceeds the threshold limit, then, in that case, the earning individual needs to file an income tax return.”
As For Salaried Individuals
“It may happen that due to various deductions and rebates, you may not have any tax liability but you may still have to file your ITR if the sum of all taxable income exceeds the threshold prescribed. For example, if your income is below 5 lakhs and does not include any long-term capital gains on listed shares and equity funds. due to rebates available under section 87A, you will not have any tax liability but have to still file an ITR,” said Balwant Jain, a tax expert.
“The threshold of basic exemption is 2.50 lakhs for those below 60 years. It is 3 lakhs and 5 lakhs respectively for those resident individuals between 60 and 80 and those over 80 years. It may happen that due to various deductions and rebates, you may not have any tax liability but you may still have to file your ITR if the sum of all taxable income exceeds the threshold prescribed,” mentioned further.
Also read:
ITR Filing: How Much Deduction Can You Get for Stamp Duty and Property Registration?
For Bank Depositors
“If a person has deposited ₹1 crore or more in one’s current account or ₹50 lahks or more in one’s savings account in a single financial year, then the bank depositor needs to file ITR even when he or she has no income tax liability. Similarly, if tax deducted from your income exceeds ₹25,000 in a single financial year, then you need to file ITR for that financial year. In case you are a senior citizen, then the tax deduction limit is ₹50,000,” mentioned Jitendra Solanki, a SEBI registered investment and tax expert.
