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Mandatory to file return if inc below 5 lacs?

Techman (Others) (24 Points)

17 August 2015

In FY14-15, my net salray is 4,30,000 and total interest from term deposits is Rs 60,000/-. My tax liability after tax saving deposits is nill. But, the employeer has already deducted Rs 600/- in 1st quarter since I made additional tax saving deposits only at end of FY. The tax deducted is shown in form 16 also.

So, If i don't want to claim refund, is it manadatory to file IT return?

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14 Replies

Kiran. S (CTO) (745 Points)
Replied 17 August 2015

The moment you have TDS cut you need to file return even though you dont have tax dues.

Otherwise you will get notice. File ITR 1 if exempt income is not greater than 5000.

i.e interest from dividend or PPF is not more than 5000. otherwiae file 2A.

I hope this helps

happy Filing

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 17 August 2015

IMHO 5000/- criteria has been revised. You have to file the return else you will get a compliance notice.

Rashi Bajaj (CA) (752 Points)
Replied 17 August 2015

Return has to be filed once the Gross Total income exceeds the max amount not chargeable to tax. i.e. Rs. 250000/- for AY 2015-16. It does not matter that there is no taxable income in the year.

Ashok J (CA Final) (880 Points)
Replied 17 August 2015

Agree with rashi... @ kiran. Wer is it mentioned if tds deducted, its mandatory to file return

Ashok J (CA Final) (880 Points)
Replied 17 August 2015

Techman Its mandatory to file the return even if u dont want refund

NAGENDRAN R (ITI) (39 Points)
Replied 17 August 2015

If you did not consume your TDS, the NMS�automatically generate notice & you will receive notice and follow up action from your jurn. AO.

mahendra (STUDENT) (64 Points)
Replied 17 August 2015

In my view it is not required to file it return in case of salaried employee with a gross total income not exceeding 5 lakhs provided: All other income details should be provided to employer and tds in respect of such income has been deducted and paid to the governent..

sunil kumar (accontant) (36 Points)
Replied 17 August 2015

It's mandatory to file income tax return once gross income exceeds 250000,even if there is no taxable income otherwise u Will receive income tax notice.

Kiran. S (CTO) (745 Points)
Replied 17 August 2015

@ Ashok. It comes from logic. There is TDS cut by somebody either Employer or service taker or interest giver or lotterywala. From Logic it is clear that you need to show it to taxman that Tax liability is zero. The only way you can show that there is zero tax liability is to file return.

If you dont file return Taxman will write a letter and may want to know why you are not consuming the TDS or whether more taxes need to be paid.

I hope I am sufficiently crisp in my explaination.

soniya agrawal (tax manager) (49 Points)
Replied 17 August 2015

The notification issued by the Income Tax Department for the salaried persons having salary below 500000 and having saving bank interest upto rs.10000/- and assessre will have suppied all particulars to his employer . And employer deducted tds on it. There should not be any damand or refund. And this notification was only for a assessment year i.e. a.y. 2012-13.

Abhishek Chotia (Accountant) (22 Points)
Replied 18 August 2015

Correct Agreed to Kiran. .. It's compliance to file return in both the case 1. When gross total income exceeds the limit of exempt income slab I.e. Rs. 2,50,000/- in 2014-15. 2. When& where any amount of tds is deducted. As if no return is filled in such case dept will raise notice for such unclaimed tds deducted.

S. Shiroor (Others) (1207 Points)
Replied 18 August 2015

I fully agree with Mr Kiran. it is wrong to assume that IT department knows that ur Tax Liability is zero. You need to distinctly prove it to IT dept that you have no more taxes to pay and the taxes already paid if in excess needs to be given back to Taxpayer.

The process of making (Tax credits - Tax liability) =0 is called Filing and assesment of IT return.

Even if your Taxable income is very low but somebody has deducted tax then also you need to prove that to IT dept.

SO DONT WAIT FOR IT DEPT TO SEND YOU A NOTICE.

babugr (dgm) (489 Points)
Replied 18 August 2015

Agree with views of experts on filing of ITR in case there is a TDS appearing in 26AS. However in the previous query the notice came for AY2008-09 in 2013 see the ability of IT dept systems and the AOs busy in other activities for years