That’s not true! You have to file your income tax returns if your taxable income for a year (April-March) exceeds the maximum amount that is exempt from tax—which, under the prevailing tax slabs, is Rs 50,000 a year. This is so even if you do not have to pay any tax or have paid excess tax. If not, you are violating the law!
You will have to file returns if:
- Your taxable income in a given financial year is more than Rs 50,000.
- You run a partnership firm (in which case, you need to file returns even if your income in a given financial year is less than Rs 50,000).
- You run a co-operative society, company or local authority (again you need to file returns even if your income in a given financial year is less than Rs 50,000).
- You have paid some tax (by way of TDS or advance tax) during the course of the year, and then find you have made enough investments by the end of the year either to reduce your tax liability or make it nil. Then, you will need to file...