Income Tax Return (ITR) filing is one of the most important responsibilities of an earning individual. Budget 2019 presented by Finance Minister, Nirmala Sitharaman, kept the personal income tax rates and slabs, as announced in the Interim Budget 2019, unchanged. This meant that those having a taxable income of up to Rs 5 lakh will not have to pay tax for the financial year 2019-20.
You can avail the zero-tax benefit announced in Budget 2019 but you still need to file your income tax return (ITR). The income tax exemption limit for all citizens below 60 years still remains at Rs 2.5 lakh and for senior citizens Rs 3 lakh.
Abhishek Soni, CEO, tax2win.in, a tax-filing firm, says, “As per the proposals of Budget 2019, there will be no tax liability if your taxable income is Rs. 5 lakh or less. However, ITR filing is still mandatory if your income exceeds the basic exemption limit of Rs. 2.5 Lakh (if age is below 60).”
If you are earning anything above the exemption limit annually, then you are mandatorily required to file your ITR. You can claim the rebate of all tax payable if your taxable income is up to Rs 5 lakh under section 87A in your ITR when you file it. If you have an income up to Rs 5 lakh but don’t file your ITR assuming that your tax payable is zero, you are liable to get a notice from the Income tax department.
CS Sudheer of IndiaMoney.com said, that there are three important points to consider for every individual who has an annual income above Rs 2.5 lakh but below Rs 5 lakh. First, you must declare gross total income by filing ITR. Secondly, you claim tax exemption and tax deduction like HRA, standard deduction, Chapter V1A (Section 80C to U), home loan interest and so on. After claiming all deductions under income tax laws from gross total income, if net taxable income doesn’t exceed Rs 5 Lakh, you get a rebate under Section 87A.
The deadline for filing belated ITR is just around the corner and those who fail to file by this deadline will have to face a double penalty. File your income tax return by December 31, 2019 to avoid a notice from the Income Tax department.