In some cases, taxpayers are not required to file an ITR. There are a number of variables that affect whether or not an ITR must be filed. These variables include the following:
- Individuals whose income exceeds the exemption limit of 2.5 lakhs/ 3 lakhs/ 5 lakhs as per applicable taxable limits.
- The ITR must be filed by individuals who own assets outside of India and receive income from them.
- Tax returns are required for individuals who pay more than Rs. 1 lakh in electricity bills each year.
- It is mandatory for assesses who deposit more than one crore in a bank account in a financial year to file an ITR.
- Expenditures on international travel over 2 lakhs during the fiscal year should be reported to the IRS.
It is imperative that irrespective of whether you are a taxpayer or not, you file itr return your ITR on time because there are a number of benefits to doing so.
The Benefits of E-Filing Income Tax Returns on Time in India
In order to avoid last-minute hassles, taxpayers should compile the following documents:
Statement from the bank relating to the mortgage
The statement is essential for claiming deductions for principal and interest repaid during the year u/s 80C up to Rs.1.5 lakh if your house property is self-occupied. In the case of let-out house property, a loss of up to 2,00,000 can be claimed, with the remaining loss carried forward to the next eight assessment years. The interest deduction is based on whether it was paid or payable during the year. For first-time homebuyers, sections 80EE and 80EEA provide the additional benefit of interest paid.
Receipt for Tuition Fees From the School
For a maximum of two children, a tuition fee receipt shows a breakdown of the tuition fees and other activities charged. Section 80C of the Income Tax Act allows a deduction for tuition fees paid. In order to claim a deduction under these sections, you should have these details.
Ppf Contributions, Life Insurance Premium Receipts
A major way to save taxes in India is to contribute to a PPF, invest in a LIC, or open a five-year fixed-term investment account. If you have made any such contribution, you must provide relevant documentation pertaining to the same. The amount invested in all such tax-saving funds can be deducted under section 80C, up to a maximum of Rs.1.5 lakhs.
Investing in NPS
In case you have exhausted your 80C limits and desire to save more taxes by investing your money, you might consider NPS if you have invested a maximum of Rs. 1.5 lakhs and Rs 50,000.
Recipients of Donations
If the donation exceeds Rs 2000, donations made to institutions that qualify for deductions of 50% or 100% under 80G will be required. The donation will have to be made via any mode other than cash from FY 2017-18 onwards.
The amount paid for medical policy premiums can be deducted from your gross total income under Section 80D. If the member insured is a senior citizen- a deduction will be available under section 80D. This deduction will be limited to Rs 25,000 per year if the member insured is a senior citizen. In addition to medical expenses up to Rs 50,000, senior citizens can also take advantage of this deduction. Each parent, spouse, and dependent child receives 80D separately.
Borrowing for Education
You can deduct the interest paid on an education loan taken by yourself, your spouse, or your children under section 80E without any limit, subject to the interest actually paid from the first year scheduled for repayment to the eighth year.