In this article I will be writing about the IT returns filing and why it is important to file the IT returns on correct time without fail. I have been receiving lot of questions related to the IT returns from our readers. This article will answer those questions and subsequently I will write another article about filing the IT returns through website. Please read this article and post your doubts in the comments section. If you like the article, please subscribe to free email updates.
Who has to file the IT Returns?
There is lot of confusion among the people about who are eligible to file the income tax returns and who are not required to file it?. The following conditions has to be met for filing the IT returns:
- You need to file an Income Tax Return if your total taxable income exceeds the basic exemption limit before taking into account deductions.
- For the financial year 2009-2010, the basic exemption limit is Rs.1,60,000. For women, the limit is Rs.1,90,000, while for Senior Citizens it is Rs.2,40,000.
- You do not need to file an income tax return if your total taxable income does not exceed the basic exemption limit before taking into account deductions, even though you may have a PAN.
What are the deductions?
You are required to pay the income tax only for your taxable income. There is certain sections providing the options to reduce the taxable income by investing your money into that specific category. For example section 80c specifies the investment on Insurance, Mutual Funds, Fixed Deposit, Home Loans, etc as the standard deductions. If you are looking for the more details, please read these article:
- Provident Fund(PF)
- Public Provident Fund(PPF)
- Tax Saving Fixed Deposit
- National Savings Certificate(NSC)
- Equity Linked Savings Scheme(ELSS)
- Life Insurance
- Principal Payment on Home Loans
What are the different ITR forms?
When you are filing the IT returns, depends on the income type your ITR forms will be different. If you want to know more about the each ITR forms, please read the official site.
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I hope this article will be useful for those who want to file the it returns first time. It is necessary to file the IT returns and it will be good if you do it online. If you have any doubts, please post it in the comments section.