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Some individuals who are regular salaried employees but whose basic income doesn’t fall into the taxable category have the misconception that they don’t have to file the tax returns for the year ending March 2023, but let us tell you, they are wrong.
ITR Filing: If you are a salaried employee and you are not sure whether to file the income tax returns for the assessment year 2023–24 or the financial year 2022–23 or not, this story is for you. As the last date of ITR filing, that is, July 31, 2023, gets near, the confusion among the salaried masses regarding the filing is increasing.
Some individuals who are regular salaried employees but whose basic income doesn’t fall into the taxable category have the misconception that they don’t have to file the tax returns for the year ending March 2023, but let us tell you, they are wrong.
ITR Filing: What Experts Say
As per investment and tax experts quoted in the Mint, when TDS has been taken out of a paymaster and the earning person’s annual income is below the threshold limit, they must file an ITR in order to receive their money through an ITR refund. A person’s net income would include income from all sources if their annual income is below the threshold limit but they have investments in mutual funds, stocks, bank fixed deposits, etc. If their net income exceeds the threshold limit, they must file an income tax return.
“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 will have to still file an ITR. ” Balwant Jain, a Mumbai-based tax expert, was quoted as saying by Mint.
Income Tax: Deductions Applicable
The expert went on to say that for this purpose, the income that should be considered is the income before the various deductions provided by Chapter VIA, which largely includes Sections 80C, 80CCD, 80D, 80G, 80TTA, 80 TTB, etc. These deductions are primarily for things like life and health insurance premiums, bank interest, payments to EPF, PPF, and NPS accounts, and tuition for children.
Income Tax Filing: Age And Income Taxable Details
For people under 60 years old, the basic exemption level is 2.50 lakh. For those who are between the ages of 60 and 80 and those who are older than 80, the amounts are 3 lakhs and 5 lakhs, respectively. Even though the total of all taxable income exceeds the established level and you have no tax liability as a result of various deductions and rebates, you may still be required to file your ITR.
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