June 24, 2024

Anybody whose revenue exceeds the utmost exemption restrict should file an revenue tax return (ITR). If an individual beneath 60 years outdated’s gross whole revenue in a fiscal 12 months exceeds Rs 2.5 lakh, they have to file an ITR. For these folks, the elemental exemption threshold stays the identical beneath the outdated and new tax methods.

An individual who was 60 years of age or older however lower than 80 at any level within the prior 12 months is taken into account a senior citizen for revenue tax causes. A person resident who was 80 years of age or older at any level within the previous 12 months is taken into account a brilliant aged citizen.

Nonetheless, aged individuals 75 years of age and above are excluded from submitting revenue tax returns beneath sure circumstances, as outlined in Part 194P of the Earnings Tax Act, 1961, which is able to take impact on April 1, 2021.

The Following Necessities Should Be Met For Exemption

  • A senior individual must be a minimum of 75 years outdated.
  • An aged individual should have been a “Resident” the 12 months earlier than.
  • An aged individual ought to solely have pension revenue and curiosity revenue, with the curiosity coming from the identical designated financial institution that gives their pension.
  • The aged individual will present a press release to the designated financial institution.
  • The financial institution designated by the Central Authorities shall be accountable for deducting TDS for aged individuals following the analysis of rebates beneath 87A and deductions beneath Chapter VI-A.
  • After the desired financial institution deducts taxes for seniors who’re 75 years of age or older, they received’t want to offer revenue tax returns.

Even in conditions when a person’s revenue falls under the brink, they’re nonetheless required beneath specified necessities to submit an ITR. Amongst these stipulations are:

When People Have Property Outdoors Of India

No matter revenue not surpassing the utmost exemption degree, a person (resident and odd resident in India) is required to submit an revenue tax return if he/she:

  1. Has any asset located outdoors of India, whether or not beneficially or in any other case, together with any monetary stake in any group.
  2. Can signal paperwork for any account that isn’t in India; and
  3. Is the beneficiary of any asset located outdoors of India, together with any monetary stake in any group.

No matter gross whole revenue, if the assessee is roofed by the seventh proviso of Part 139(1), they have to file an revenue tax return. Based on this clause, those that wouldn’t have been required to submit a return if their revenue didn’t exceed the utmost exemption degree should accomplish that if, within the previous 12 months, that they had:

  • Made deposits totalling greater than Rs 1 crore into a number of present accounts held by a cooperative or financial institution;
  • Spent greater than Rs 2 lakh on an abroad journey for oneself or one other individual; or
  • Incurred bills above one lakh rupees to settle an influence invoice;
  • The enterprise’s gross revenues, turnover, or whole gross sales for the prior 12 months exceeded Rs 60 lakh;
  • Knowledgeable’s whole gross earnings for the prior 12 months exceeded Rs 10 lakh;
  • At the least Rs 25,000 in whole taxes have been deducted and picked up within the previous 12 months. For a resident who’s 60 years of age or older, the brink restrict is Rs 50,000; in any other case.
  • The whole quantity deposited by the person in a number of financial savings financial institution accounts over the previous 12 months was a minimum of Rs 50 lakh.

The specialists’ opinions and monetary recommendation on this News18.com story are their very own, not the web site’s or its administration’s. It is suggested that readers seek the advice of licensed professionals earlier than making any monetary selections. 

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