Am i liable to pay tax?

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nRiTeCh

nRiTeCh

Oracle
I heard that Individuals who earn less than 5lacs per annum do not need to pay tax.
Is that true?

I earn less than 4.5lacs p.a. so do I need to pay tax?

I'm working with an mnc via a contract company who says I need to pay tax. :23:

Please clear my doubts on the same.
 
@nRiTeCh its exemption for filing incometax returns not from paying tax.

You need to pay taxes calculating basic exemption of 2L and your investments in 80C instruments, plus any allowables in your case as may be. Remaining income will attract tax according to slab in your case at 10%.
 
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nRiTeCh said:
Income tax return not required for salary upto Rs 5 lakh a year | NDTV.com
INCOME TAX RETURN EXEMPTION UP TO 5 LAKH FOR SALARIED EMPLOYEES | SIMPLE TAX INDIA

says its exempted
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Income Tax & Income Tax Return(ITR) are both different things.
Income Tax is valid on your income above 180000rs(check slab)

While ITR is just a process to declare that how much tax you payed in the year & is the way to tell govt that you are good citizen & pay taxes on time :D

ITR filing is now compulsory to all those who have income more than 5 lakh per annum, so you are safe for now !!
 
Since companies cut TDS at 10% above 1.80L salary hence indirectly your taxes are paid by company hence freedom fromreturn filing.

But if you have income from other source like say fixed deposits where annual income more than 10000.You indirectly become liable to file returns even though salary to be less than 5 lakh annually,

Its always better to file return rather than looking loops to escape.Its always better for future reference.
 
Also do make note of the special requirements for the exemption from returns filing.

1. People do not report the tax cuts to be levied on their saving account interests etc for inclusion in TDS documents prepared by their company and the companies quite often do not even entertain such requests.

2. There is a ceiling on the amount of interest as well. If you earn more than 10000 interest in the year on your FDs/savings account, you will have to file the returns.

3. People with House loans which they use for getting exemptions will also have to explicitly file the returns.

So for most people, the exemption from filing is practically not applicable.
 
MAGNeT said:
Since companies cut TDS at 10% above 1.80L salary hence indirectly your taxes are paid by company hence freedom fromreturn filing.

But if you have income from other source like say fixed deposits where annual income more than 10000.You indirectly become liable to file returns even though salary to be less than 5 lakh annually,

Its always better to file return rather than looking loops to escape.Its always better for future reference.
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So if my company is deducting TDS and I have no incomes apart from salary, I don't need to file an ITR even is my salary exceeds 5L?

5L is the CTC right? Including firms contribution to PF?
 
letmein said:
So if my company is deducting TDS and I have no incomes apart from salary, I don't need to file an ITR even is my salary exceeds 5L?

5L is the CTC right? Including firms contribution to PF?
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Well i am not sure about ctc stuff as i am yet to study that part of taxation(i am a business guy..rule applies differently for me)
.
If income more than 5 lakh who said you didn't have to file return?

Again i am repeating and saying whether less than 5 lakhs please file the return because

Even though government says its not compulsory but just after this announcement in middle lot of notification has come which has denied and made people to file return compulsorily and when you dont file you become indirectly liable for penalty or the tax guy scapegoat.

Example is ::

Notifications for
  • If an Employee has Housing Loan or Interest Income from FIXED DEPOSITS (FD’s) or Post Office Interest or Interest Income from NSC or KVP (Even If it is Nominal Amount), they have to file their Tax Returns.
  • 1.If a Salaried Employee has more than One Form 16 or if he / she have additional Tax Liability or Refund (Excess Tax Paid or TDS deducted), such Salaried class have to file their Income Tax Returns.
  • 1.An Employee who has not received Form 16 from their Employer (Where Tax Returns are filed based on the pay slips as there is a TDS deduction by the Employer), Tax Returns need to be filed.
Click to expand...


Also see this

Tax exemption to those with income up to Rs 5 lakh? No taxpayer can avail this - Economic Times
 
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