The government’s goal is to increase the list of conditions for filing ITRs, to bring more people under income tax. At present, only 6 to 8 percent of the population file income tax returns.
If your income exceeds the basic income tax deduction limit, you must file an income tax return. In addition to these, there are many conditions that require you to file an Income Tax Return (ITR), even if your income is exempt. The government has been revising the list from time to time. In 2019, for example, the government introduced a number of new conditions.
That said, if you deposit Rs 1 crore or more in a current account in a financial year, spend more than Rs 2 lakh on travel abroad or pay more than Rs 1 lakh electricity bill per year, then there is an income tax return. In fact, filing means that if your income is less than the basic discount limit and any of the above conditions apply to you, you will need to file an ITR.
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The government has added new conditions to this list. The Central Board of Direct Taxes (CBDT) has issued a new notification on April 21. These Terms are effective immediately. This means that if you fall into any of these conditions, you will need to file an ITR from this assessment year onwards, even if your annual income is within the deduction limit.
If you do business and your total sales, turnover or total receipts in a financial year is more than Rs 60 lakh, then you need to file an income tax return. Also keep in mind that your business will not be considered for loss or gain.
If you are a professional and your total earnings from the profession last year was more than Rs 10 lakh, then you need to file ITR. Professionals include Engineer, Legal, IT Professional, Accountancy, Interior Decorator, Medical, CS, Film Artist and Technical Consultant.
If your withholding tax (TDS) is more than Rs 25,000 in a financial year, you will need to file an income tax return. For adults i.e. for those above 60 years, the TDS limit will be Rs. 50,000. If you deposit more than Rs 50 lakh in one or more savings accounts in a financial year, you will need to file an income tax return.
The government’s goal is to increase the list of conditions for filing ITRs, to bring more people under income tax. Currently, only 6 to 7 percent of the population file income tax returns. The government is trying to increase the number of income tax returns.
