Who is exempt from filing ITR / Article / VibrantFinserv -

Exempt from filing ITR

Exempt from filing ITR: As of September 2021, certain individuals are exempt from filing Income Tax Return (ITR) in India if they meet certain criteria. The exemption from filing ITR is available to individuals who satisfy the following conditions:

Individuals below the age of 60 years:

Total income does not exceed ₹2.5 lakh in the financial year.
Senior citizens (60 years or older but below 80 years of age):
Total income does not exceed ₹3 lakh in the financial year.
Senior citizens (aged 60 years or older but below 80 years):
Total income does not exceed ₹5 lakh in the financial year.
Please note that even if an individual falls under the exempted income category, they may still be required to file an ITR in certain situations, such as:

Claiming a refund of any tax deducted at source (TDS).
Having income from foreign assets.
Being a resident and having signing authority in any account located outside India.
Being a resident and having assets or financial interest in an entity located outside India.
It’s important to consult with a tax professional or refer to the official website of the Income Tax Department for the most up-to-date information and to determine whether an individual is exempt from filing ITR based on their specific circumstances.

FAQs:

Who is exempt from filing ITR?
- Individuals with total income below the basic exemption limit (₹2.5 lakh for individuals below 60 years) are generally exempt.
Are senior citizens exempt from filing ITR?
- Yes, senior citizens (60 years and above) have a higher exemption limit of ₹3 lakh.
Is there any exemption for very senior citizens?
- Yes, very senior citizens (80 years and above) have an exemption limit of ₹5 lakh.
Do individuals with only salary income need to file ITR?
- If their total salary income is below the exemption limit, they are not required to file.
Are people earning income from savings accounts required to file ITR?
- Income from savings accounts up to ₹10,000 is exempt; if total income is below the exemption limit, filing is not necessary.
Is it mandatory for students to file ITR?
- Students with income below the exemption limit are not required to file.
Do pensioners need to file ITR?
- Pensioners with income below the exemption limit are exempt from filing ITR.
What about individuals with only agricultural income?
- If agricultural income is below ₹5,000 and total income is below the exemption limit, they are exempt.
Are NRIs exempt from filing ITR?
- NRIs are required to file ITR only if they have taxable income in India that exceeds the exemption limit.
Can individuals choose not to file ITR if they have a taxable income below the threshold?

While not mandatory, it is advisable to file ITR for record-keeping and to claim refunds, if any.