With the new financial year just around the corner, it will be the penalty for an increasing number of taxpayers in India to report income tax returns (ITR) for the assessment year 2024-25. An important policy over which the Income Tax Department has provided adequate clarity is the income limits that determine ITR filing.
For individuals below 60 years of age, for each category, the income exemption level is Rs. 5 lakh. People aged 60 to 80 years are charged Rs 3 lakh, and for super senior citizens, those above 80, are Rs 5 lakh. In all cases, if one’s income before allowing for deductions is more than these limits, he/ she will be required to furnish an ITR.
However, the filing requirement does not stop at income levels; factors such as age, marital status, and dependency can play an important role. Finding other types of income besides paycheck for example, Investment income or any other source, is essential.
Besides, there are instances where the taxpayer has to file his ITR even if his income is below the threshold, certain conditions such as major travel expenses, or having foreign assets, etc.
FTA can lead to penalties, interest on tax due, and prosecution, and other agreements can be imposed for failure to file ITRs. These penalties include ‘’late filing fees’’, which may be charged, and imprisonment that ranges from 3 months to 2 years.
Misunderstanding of the ITR filing requirements and deadlines can fail to meet the filing compliance and attract legal or financial penalties hence the need to understand the following rules and requirements better.
