At what age can you stop filing income taxes?

Last Updated at: April 06, 2020
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At what age can you stop filing income taxes_

It’s that time of the year again when you need to gear up for endless calculations, documentation and trips to the accountant – The Income Tax Returns filing season. One may reasonably wonder, till when does the return needs filing? Is there a specific age when you can stop filing income tax returns? We answer all this and more in this post.

Who needs to file ITR and till what age?

  • Tax filing, independent of age – An income tax return is compulsory for all residents earning beyond a prescribed threshold. Based on the financial year 2019-20, if your gross total income (excluding deductions) exceeds the basic exemption limit of ₹2.5 lacs worth of income, above which tax is charged, you need to file ITR. While income till ₹5 lacs per annum becomes tax-free, a return would still need to be filed if the income is between Rs.2 – 5 lacs. These returns have to be filed online, however, the department allows senior citizens aged above 80 to file paper returns.
  • New expenditure conditions introduced – There are several other conditions introduced by the Budget 2020, such as paying an electricity bill exceeding 1 lacs a year, or incurring expenditure exceeding 2 lac rupees on a foreign holiday, or withdrawing more than 1 crore from one’s bank account.

Thus, regardless of the age, if the earnings or expenditure or gains from selling an asset are beyond the government prescribed threshold, a tax return needs to be filed.

don’t forget to file your itr now

Erroneous beliefs about ITR filing

  • A minor doesnt need to file returns: True, in most cases as minors aren’t employed and do not earn a taxable income. However, in several cases, such as where a minor may be a child artist, earning on his or her own account based on his or her own talent, the tax will have to be paid in their own name.

  • Interest income for minors is not taxable: Even if you open savings or fixed deposits as a parent in the name of your child, the earning from the same is taxable. Moreover, this income will be clubbed in the income of the parent with higher income.
  • No need for a return if your employer deducts tax via Form 16: Even in case your employer deducts tax at source and issues Form 16, you’d still have to file a return in your name. This is necessary to ensure that the returns tally and that the tax paid is accurate. You can claim a refund in case excess tax has been deducted.
  • Tax returns are dependent only on income or gains: This is untrue. Irrespective of your salary, if you want to claim a tax refund or want to carry forward a loss, filing ITR is mandatory. Further, this financial year onwards, a high expenditure on electricity or foreign holiday would also attract tax.

 

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At what age can you stop filing income taxes?

239

It’s that time of the year again when you need to gear up for endless calculations, documentation and trips to the accountant – The Income Tax Returns filing season. One may reasonably wonder, till when does the return needs filing? Is there a specific age when you can stop filing income tax returns? We answer all this and more in this post.

Who needs to file ITR and till what age?

  • Tax filing, independent of age – An income tax return is compulsory for all residents earning beyond a prescribed threshold. Based on the financial year 2019-20, if your gross total income (excluding deductions) exceeds the basic exemption limit of ₹2.5 lacs worth of income, above which tax is charged, you need to file ITR. While income till ₹5 lacs per annum becomes tax-free, a return would still need to be filed if the income is between Rs.2 – 5 lacs. These returns have to be filed online, however, the department allows senior citizens aged above 80 to file paper returns.
  • New expenditure conditions introduced – There are several other conditions introduced by the Budget 2020, such as paying an electricity bill exceeding 1 lacs a year, or incurring expenditure exceeding 2 lac rupees on a foreign holiday, or withdrawing more than 1 crore from one’s bank account.

Thus, regardless of the age, if the earnings or expenditure or gains from selling an asset are beyond the government prescribed threshold, a tax return needs to be filed.

don’t forget to file your itr now

Erroneous beliefs about ITR filing

  • A minor doesnt need to file returns: True, in most cases as minors aren’t employed and do not earn a taxable income. However, in several cases, such as where a minor may be a child artist, earning on his or her own account based on his or her own talent, the tax will have to be paid in their own name.

  • Interest income for minors is not taxable: Even if you open savings or fixed deposits as a parent in the name of your child, the earning from the same is taxable. Moreover, this income will be clubbed in the income of the parent with higher income.
  • No need for a return if your employer deducts tax via Form 16: Even in case your employer deducts tax at source and issues Form 16, you’d still have to file a return in your name. This is necessary to ensure that the returns tally and that the tax paid is accurate. You can claim a refund in case excess tax has been deducted.
  • Tax returns are dependent only on income or gains: This is untrue. Irrespective of your salary, if you want to claim a tax refund or want to carry forward a loss, filing ITR is mandatory. Further, this financial year onwards, a high expenditure on electricity or foreign holiday would also attract tax.

 

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