8/8/2017 Do I need to file an income tax return if there is no taxable income?

Two years ago, I had good revenue and I paid Rs. 100,000 in taxes. But in 20

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Do I need to le an income tax return if there is no
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taxable income? Two years ago, I had good revenue best answers on Quora.
and I paid Rs. 100,000 in taxes. But in 2014-2015, my
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gross income was not even Rs.200,000. Am I liable
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31 Answers Is there any benefit to filing an income tax return in

India even if your salary is in a non-taxable bracket?

Balwant Jain, Have been writing in newspapers and website. Doing TV Do I need to file income tax return if tax payable is nil?
shows and chats on taxes.
Answered Oct 6, 2015 Who should file income tax return?

I am reproducing one of my article, which answers your question fully on whether Do banks file income tax returns?
you are required to le your income tax return or not.
Do I need to file income tax return when FD is my only
For this year the due date was extended till 7th September but the general due date is
income?
31st July only.
Do I need to file Tax return in India even If I do not
have any source of Income?
While talking to my acquaintances around me I gather an impression that majority
of the salaried people feel that they are not required to le their income tax returns as What will happen if I have not filed for 3 years
tax is already deducted from their salaries. This is not correct legal position. Payment because of total gross income being less than Rs.
5,000,000?
of taxes and ling of income tax return are two separate obligations. There is another
misconception that if I miss the deadline of 31st July, I cannot le my return later on More Related Questions
as the deadline is sacrosanct and a now or never thing.
In this article I will explain the legal position concerning individual tax payers as Question Stats
regards requirement of ling the income tax return.
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Who is required le the IT returns?
So to start with, you are required to le your income tax return if your gross total Last Asked Jul 20
income is more than the basic exemption limit. For the year ended 31st March 2015 Edits
this is Rs. 2.5 lakhs for an ordinary individual, Rs. 3 lakhs for an individual over 60
years and Rs. 5 lakhs for an Individual above 80 years.
The word gross total income is not the same as the income on which your tax liability
is calculated. Gross total income is the income calculated before any deduction
under Sections like 80 C, 80 CCC, 80 CCD, 80 CCG, 80D, 80E, 80EE, 80G and 80 GGA
and 80 TTA is availed. The deductions cover various items like contribution towards
PF, NPS and PPF, payment of School fee for your children, premium for your life and
health insurance. This also covers purchase of NSC, home loan repayment, rent paid
etc. as well as interest on saving bank account.
So even if you may not have any tax liability after availing above deductions, you still
need to le your tax return in case your gross total income before such deductions
exceeds the amount of basic exemption applicable in your case.
You need to le return in case you own any asset outside India or you are an
authorized signatory for any account located outside India. This becomes applicable

https://www.quora.com/Do-I-need-to-file-an-income-tax-return-if-there-is-no-taxable-income-Two-years-ago-I-had-good-revenue-and-I-paid-Rs-100-00 1/5
8/8/2017 Do I need to file an income tax return if there is no taxable income? Two years ago, I had good revenue and I paid Rs. 100,000 in taxes. But in 20
to those of you, without you noticing it, who had gone outside India on deputation or
employment and had opened a bank account and did not close the bank account. If
you have any investments like shares, bonds or mutual fund units of foreign
companies, you also are required to le return irrespective of your income level for
the year. So in case you have received shares of a foreign company as ESOP as part of
your compensation package, you are covered under this provision and le the return.

What is the last date for ling of my income tax return?

In case you are required to le return as discussed, the due date is July 31. The due
date is applicable generally in case of individual tax payers. However in case you are
carrying on a business and your accounts are required to be audited, the due date
gets extended till 30th September. Even for the people who are working partners in
partnership rms, whose accounts are audited, the due date is 30th September.

What happens if you miss the deadline?

In case you le your current income tax return after due date i.e. 31st July, 2015 you
will not be able to revise your income tax return in case any omission or error is
detected. You also will have to pay penal interest on the amount of tax for the period
of delay in case any tax is still payable. Another consequence of missing the deadline
would be that, in case you have business loss or capital gains loss in the current year,
you will not be able to carry it forward to be set of in subsequent years.

Do I pay any penalty if you do not le the return by due date?

There is no penalty if you fail to le your return by 31st July, 2015 and le the same by
March 31, 2016. However if your income is taxable and you fail to le your return of
income by March 31, 2016, the same can be led only by 31st March 2017. However in
such a situation the income tax ocer can levy a penalty of Rs. 5,000 after giving you
an opportunity to explain your case.
So from the above discussion it becomes clear that even if you do not have any tax
liability or appropriate taxes have been deducted from your income, you are still
required to le your return. Moreover it is better to le the return by the due date to
avoid any complication later on.
Balwant Jain is a CA, CS and CFP. Presently working as Company Secretary of
Bombay Oxygen Corporation. He can be reached at jainbalwant@gmail.com

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Updated Aug 2

Income Tax return has to be led by any Firm or Company irrespective of whether
there is a loss or income. The amount of income that you had 2 years ago or the
income you have now are both treated equally and as a rm you must le income tax
return. In case you do not le your income tax returns within the due date, you are
liable to pay interest (basis the number of days delayed post due date) on the due tax
amount.

If the return is not led before the end of the assessment year (i.e. next Financial Year)
in addition to the applicable interest, an additional penalty of INR 5,000 shall be
levied.

https://www.quora.com/Do-I-need-to-file-an-income-tax-return-if-there-is-no-taxable-income-Two-years-ago-I-had-good-revenue-and-I-paid-Rs-100-00 2/5
8/8/2017 Do I need to file an income tax return if there is no taxable income? Two years ago, I had good revenue and I paid Rs. 100,000 in taxes. But in 20
You can understand Income Tax better from this page - Income Tax in India 2016 -
Useful Tips with Examples

If you have any other Personal Finance queries, you can follow and tweet out
and I'll be happy to answer them for you - Adhil Shetty (@adhilshetty) | Twitter

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Prashant R. Deshmukh
Answered Apr 5

With the last date for ling income tax returns (ITR) fast approaching, most tax payers
are probably in the midst of doing so. But, what if your income is below the taxable
limit of Rs 2.5 lakh per annum? Should you still le returns? You should, under a few
circumstances. Some of these are mandatory, while some are advisable as there are
benets of ling.

The biggest benet is that it helps when you apply for a loan in future or when you
apply for a visa, say tax experts. For any home loan, vehicle loan, car loan, etc, most

https://www.quora.com/Do-I-need-to-file-an-income-tax-return-if-there-is-no-taxable-income-Two-years-ago-I-had-good-revenue-and-I-paid-Rs-100-00 3/5
8/8/2017 Do I need to file an income tax return if there is no taxable income? Two years ago, I had good revenue and I paid Rs. 100,000 in taxes. But in 20
lenders ask for proof of tax returns of the previous three years. So, if you have just
entered the work force and at Rs 20,000 a month, your annual salary is below the
taxable limit of Rs 2.5 lakh, you are not required to le returns. But, it is useful to do
so because you can build proof of your nances. Even if you are applying for a loan as
a co-borrower, the return will serve as proof of your income. Similarly, if you are
planning to travel abroad, tax returns are required while applying for a Visa.

Since 2012, any individual holding a foreign asset has to mandatorily le returns,
even if there is no income from that asset, says Sanjeev Gokhale, a Mumbai-based
chartered accountant. It could be a foreign bank account, immovable property,
partnership in a rm, etc. But, they may still continue to hold foreign assets. In such
cases, they have to le returns, he points out.

ALSO READ: professional Tax adviser ?

Gokhale cites the example of a client who is a retired senior citizen. She earned Rs 7
lakh interest-free income from tax-free bonds and her taxable income was only Rs
14,000. While there was no need for her to le returns, I advised her to because it is
proof that she has income, even if it is not taxable. There is a column in the ITR form
where you can show your non-taxable income, he adds.

A reason why you have to mandatorily le returns is to claim tax refund or set o
losses. For instance, if you have suered losses from stock market transactions and
you want to carry it forward to the next year, you must le for a refund, even if your
annual income is below the taxable limit, says Divakar Vijayasarathy, co-founder of
Services Tax Consultants , an online marketplace for tax, legal and regulatory
services.

Or it could happen that despite your income being below the taxable limit, your
employer has cut TDS (tax deducted at source). Or you earned some money through
freelance work and the company deducted TDS at 10 per cent. But since your income
is lower than the taxable limit, you are entitled for a refund. For claiming this refund,
you have to le a return.

ALSO READ: Services Tax Technical Assistance

Another case could be if you are earning rental income of more than Rs 1.8 lakh a
year. In this case, the tenant has to deduct TDS. So, while you are entitled to refund, if
you have no other source of income, you have to le a return to claim the refund, says

https://www.quora.com/Do-I-need-to-file-an-income-tax-return-if-there-is-no-taxable-income-Two-years-ago-I-had-good-revenue-and-I-paid-Rs-100-00 4/5
8/8/2017 Do I need to file an income tax return if there is no taxable income? Two years ago, I had good revenue and I paid Rs. 100,000 in taxes. But in 20
Varun Advani, chief operating ocer, professional Tax adviser , Services Tax
Technical Assistance , a registered e-return intermediary.

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