The season to file income tax returns has started. More than one crore people have also filed ITRs. However, this time there has been more time to file ITR. Experts say that if your salary is more than the limit of tax exhalation, then you should file returns. In some situations, it is mandatory to file returns even if the income tax is less than the examination limit. Many people think wrong about income tax return. Because of these thinking they do not file returns. They get a shock when they receive the notice of the Income Tax Department.
1. No need to file returns if TDS is cut
Tax is deducted every month due to the salary of people doing jobs. This is called TDS. According to the tax on the total salary in a financial year, the employee keeps on taxing the tax every month from the salary of the employee. Because of this, the employee is not burdened with much tax at once. Employer TDS deposits money with every quarter to the government. Many jobbers believe that since the employer has already deducted tax before their salary, they do not need to file ITR. It is wrong to think so. Even if TDS is cut off from your salary, it is mandatory for you to file ITR.
Many people invest in cryptocurrency. They keep buying and selling cryptocurrency. This makes them profitable. Many times they also lose. All virtual digital assets (VDAs) in India are under income tax. Profit on investment in cryptocurrency is taxed at a similar rate of 30 per cent. If it is profitable from Crypto, then it is necessary to file income tax returns. Returns will also have to be filed in the event of losses from Crypto. Apart from this, 1 % TDS is applicable on every transaction in cryptocurrency. The responsibility of cutting this TDS is on the buying cryptocurrency.
3. Tax exemption on income made abroad
Resident and Ordnary Residents have to pay tax in India on income abroad. This means that it is necessary for such people to file income tax returns in India. It is necessary to tell them about the foreign bank account in ITR and the income made abroad. Not to do so can cause the Income Tax Department notice. Income tax depertment can also impose penalty in such situations.
4. It is necessary to file ITR in these four situations
Even if a person’s income tax is inside the examination limit, it is necessary for him to file income tax returns in some situations. First, if a person has more than Rs 1 crore in the current account, then he will have to file an ITR. If a person has spent more than 2 lakh rupees in a financial year on a foreign trip, then he will have to file ITR. If the electricity bill is more than Rs 1 lakh in a financial year, then it is necessary to file an ITR.