Do I need to file ITR if income is less than 5 lakhs?
So in your case as your taxable income is Rs. 4 lakh which is below Rs. 5 lakh, the threshold limit, for availing the rebate under Section 87A, you will not have to pay any tax in respect of your income but still you will have to file your ITR.
Is it mandatory to file income tax return below 5 lakhs Quora?
Yes, it is mandatory to file Income tax Return for a person having income upto 5 Lakh. Earlier an exemption was available from filling of ITR to people having only savings interest income and salary income aggregating upto INR 5 Lakhs, provided TDS was deducted on such income.
What is the basic exemption limit for AY 2021 22?
Tax Slabs for AY 2021-22
| Existing Tax Regime | New Tax Regime u/s 115BAC | |
|---|---|---|
| Income Tax Slab | Income Tax Rate | Income Tax Slab |
| Up to ₹ 3,00,000 | Nil | Up to ₹ 2,50,000 |
| ₹ 3,00,001 – ₹ 5,00,000 | 5\% above ₹ 3,00,000 | ₹ 2,50,001 – ₹ 5,00,000 |
| ₹ 5,00,001 – ₹ 10,00,000 | ₹ 10,000 + 20\% above ₹ 5,00,000 | ₹ 5,00,001 – ₹ 7,50,000 |
What would be take home salary if CTC is 7 lakhs per annum?
Summary of Salary Package in below table
| Particulars | Amount (INR) |
|---|---|
| Tax liability including cess (New tax regime) | INR 53,976/- |
| HRA Tax Exemption | INR 51,000/- |
| In hand salary (Old tax regime) | INR 7,16,992/- per year (INR 59,749/- per month) |
| In hand salary (New tax regime) | INR 7,23,024/- per year (INR 60,252/- per month) |
What is the meaning of 5 lakh per annum?
Annual salary = 5 lakh. Annual salary = 500000. As one annum means 12 months, monthly salary will be – Monthly salary = annual salary / 12.
How do I file a zero tax return?
Filing a nil return is no different from filing a regular income tax return.
- Enter your income details and deductions. Income tax is computed and you will be shown that you have no tax due.
- Submit your return to the Income Tax Department. And send your ITR-V to CPC Bangalore to complete the e-filing process.
Is it mandatory to file income tax return below 2.5 lakhs Quora?
A person earning less than Rs. 2.5 lakh is not statutorily required to file income tax returns. However if you want to keep a long term record you may file a return.
Is filing ITR mandatory Quora?
It is mandatory to file ITR i.e. income tax return if your income is more than the basic exemption limit. However, it is mandatory to file ITR in certain situations irrespective of basic income.
What are the tax exemptions for 2021?
Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax regimes. Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.
What is the tax deduction for 2021?
$12,550
The standard deduction is a specific dollar amount that reduces your taxable income. For the 2021 tax year, the standard deduction is $12,550 for single filers and married filing separately, $25,100 for joint filers and $18,800 for head of household.
Is PF a part of CTC?
Cost to Company or CTC CTC involves a number of other elements and is cumulative of House Rent Allowance (HRA), Provident Fund (PF), and Medical Insurance among other allowances which are added to the basic salary.
What is the income tax deduction for 5 lakhs in 2019?
As per the Interim Finance Minister Piyush Goyal’s budget speech in February 2019, “Individual taxpayers having taxable annual income Rs 5 lakh will get full tax rebate and therefore will not be required to pay any income tax.”
What are the changes in personal income tax rates in budget 2019?
Budget 2019 presented by Nirmala Sitharaman in the Parliament, kept the personal income tax rates and slabs changes as announced in the Interim Budget 2019 unchanged. This meant that those having taxable income of up to Rs 5 lakh will not have to pay tax for FY 2019-20.
What is the income tax exemption limit for senior citizens in 2019?
You can avail of 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.
What is the tax liability of incremental income under 5 lakhs?
Once the income cross the magical number of five lakhs, the tax payer is burdened with a tax liability of 12,500/- even if the incremental income is only a few hundreds which is unjust to say the least and will induce tax payers to use ingenious means to bring it under 5 lakhs rupees.