Do I need to file a tax return if my 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.

What is the minimum income to file ITR?

For FY 2020-21, total income up to Rs 2.5 lakh is not subject to tax for an individual. Such threshold income for a resident senior citizen (age of 60 years or more) and resident super senior citizens (age of 80 years or more) is Rs 3 lakh and Rs 5 lakh, respectively.

Is filing tax return mandatory?

Not everyone is required to file an income tax return each year. Generally, if your total income for the year doesn’t exceed certain thresholds, then you don’t need to file a federal tax return.

Is it compulsory to file income tax return if we have PAN card?

While any one having a valid PAN is eligible to file IT return even if their income is below exemption limit, it is mandatory for companies and firms to file ITR. Individuals whose taxable income exceeds the maximum amount not chargeable to tax are eligible for income tax return.

Can a normal person file ITR?

As per income tax laws, ITR must be mandatorily filed if a resident individual’s gross total income during the financial year exceeds the basic income exemption limit. If an individual opts for the new, concessional personal tax regime, then his/her basic exemption limit will be Rs 2.5 lakh, irrespective of age.

Do you have to file a tax return?

You may not have to file a federal income tax return if your income is below a certain amount. But, you must file a tax return to claim a refundable tax credit or a refund for withheld income tax. Find out if you have to file a tax return. If you find out you need to file a tax return, learn how the process works, when your return is due, and more.

Do you have to file ITR if you earn less than 5 lakhs?

While presenting Budget 2019, the finance minister mentioned that people earning less than Rs 5 lakhs would have to pay no taxes as they would get tax rebate up to Rs 12,500 (Click to know how tax rebate works). Many people thought since they have no taxes to pay hence they do not have to file their ITR.

Do you have to file an itr if your income is zero?

Income Tax Return Alert: If your income is up to Rs 5 Lakhs you pay zero tax, but you must still file ITR. Income Tax Return Alert: Those earning individuals who have business income, they must file their ITR even when their annual income is less than Rs 2.5 lakh. Photo: Reuters

Do I have to file a tax return if my income is low?

You may not have to file a federal income tax return if your income is below a certain amount. But, you must file a tax return to claim a refundable tax credit or a refund for withheld income tax.