{"id":11471,"date":"2019-05-21T10:49:19","date_gmt":"2019-05-21T05:19:19","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=11471"},"modified":"2021-05-24T00:42:08","modified_gmt":"2021-05-23T19:12:08","slug":"income-tax-return-income-less-than-rs-5-lakh","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/income-tax-return-income-less-than-rs-5-lakh\/","title":{"rendered":"Do we need to file income tax return if the income is less than Rs 5 Lakh?"},"content":{"rendered":"\n

I have received some queries asking, \u201cIs it compulsory to file income tax return (ITR) if the income is less than Rs 5 lakhs?<\/strong>\u201d I understand why there is so much confusion. We explain who needs to compulsorily file tax return and who are exempted from the same.<\/p>\n

\"ITR
ITR if income is less than Rs 5 Lakh<\/strong><\/figcaption><\/figure>\n

Zero Tax if income is less than Rs 5 Lakh<\/h2>\n

While presenting Budget 2019, the finance minister mentioned that people earning less than Rs 5 lakhs would have to pay no taxes as they would get tax rebate up to Rs 12,500 (Click to know how tax rebate works<\/a><\/em>). Many people thought since they have no taxes to pay hence they do not have to file their ITR.\u00a0<\/p>\n

There are two problems with this argument:<\/strong><\/span><\/p>\n

The rules proposed in Budget 2019 is applicable from FY 2019-20 (AY 2020-21)<\/strong>, which means the tax liability after income tax rebate for people with earning of less than Rs 5 lakh would be 0 from FY 2019-20. The present tax return for AY 2019-20 is for taxes that was applicable on income in FY 2018-19. And people had to pay taxes even if their income was less than Rs 5 lakh.<\/p>\n

The second confusion would they have to file returns next year with no tax outgo?<\/strong> The answer is may-be and we give you the details. The income limit until when you need not file tax return is determined by section 139(1)<\/strong> \u2013 which states the following: \u201cEvery person who has a total income that exceeds the exemption limit is liable to furnish Income Tax Return within the due date\u201d. In both AY 2019-20 & AY 2020-21 the exemption limit is as follows:<\/strong><\/p>\n