INCOME TAX FILING

As an Individual you are required by law to file your Income Tax Returns, if your total income without allowing deductions under chapter VIA (Section 80C to 80VA) exceeds the basic exemption limit.

For Assessment Year 2013-14, the basic exemption limits are the following:

•   For Men and Women below the age of 60, the exemption limit is Rs. 2,00,000.

•   For Senior Citizens, whose age is between 60 years to 80 years, the exemption limit is Rs. 2,50,000. This is identical for men and women.

•   For Super Senior Citizens, of the age of 80 years or more, the exemption limit is Rs. 5,00,000.

What does Total Income without allowing deductions (such as Section 80C etc) actually mean?

Let’s say, your gross total Income is Rs. 2,50,000. You have paid Rs. 50,000 in LIC premium for claiming deduction under Section 80C. Your Taxable Income is Rs. 2,00,000 (Rs. 2,50,000 - Rs. 50,000). The tax payable on Rs. 2,00,000 is Zero.

However, even in this situation, you are required to file your Income Tax Return as your gross total Income exceeds the basic exemption limit of Rs. 2,00,000. (assuming you are not a senior citizen).

Compulsory filing of Income Tax Returns if you have foreign assets.

From the  Assessment 2012-13, it is mandatory to file your Income Tax Return if you have any foreign assets. Even though you may not have any taxable Income. For this Assessment year 2013-2014, the same provisions will apply.

When is e-filing your Income Tax Return compulsory?

For the Assessment year 2013-14, e-filing of the Income Tax Return has become compulsory for the following cases:

•   If your Total Income exceeds Rs. 5 Lakhs, then you must e-file your Income Tax Return.

•   If you own foreign assets, you must e-file.

I have paid all my taxes, do I still need to file my Income Tax Return?

As explained above, the law has placed an obligation on you to file the Income Tax Return even if you have no tax due.