0 11 min 7 mths

Personal Taxation in India, ITR Filing is Mandatory in 10 Situations:

  1. If your total income exceeds exemption limit of Rs. 2,50,000/-.
  2. If you have assets outside India.
  3. If you deposit more than Rs 1 crore in a bank account.
  4. If you incur Rs. 2 lakh on foreign travel.
  5. If your electricity Consumption is Rs. 1 lakh per annum.
  6. If Turnover of your business is more than Rs. 60 lakh in a year.
  7. If Gross Receipt from Profession is more than Rs. 10 lakh.
  8. If TDS is Rs. 25,000 or more
  9. If TCS is Rs. 50,000 or more.
  10. If deposits in a saving bank account is Rs.50 lakh or more.

Less than 5% Indians will be eligible! Anyway, last date for filing ITR is normally 31st July. Late fee varies from 1000/- to 10,000/- depending on whether your total income below or above 5 lacs.. for more and latest rules, refer https://incometax.gov.in

On home loan interest: One can claim deduction towards interest paid for advance construction period in 5 equal annual installments starting from the year of possession or acquisition. This one-fifth amount needs to be added with the interest paid during the year and the total should be reflected as interest payable on borrowed capital in the house property schedule. In cases where there is still a loss to be carried forward after applying the set-off provisions, it should be disclosed in the carry forward loss schedule. One should evaluate all factors such as return on investment, periodicity of return, and lock-in period before choosing the investment option that best suits needs and objectives. Tax saving alone cannot be the deciding factor.

Despite tax reforms and ease of filing, most tax payers still look for CA or tax experts who grabs thousands of rupees (without any receipt) for typing few entries in a FY season but most of their earnings never comes to picture. If not earning much, better Income Tax be self-filed or even avoided without any moral shame or guilt whatsoever as you’re already paying to Government many other taxes like GST, property tax, fuel tax, energy tax, education tax, food tax, health tax, water tax…

It’s also amazing how ruthless and tough the rules are for honest law abiding / middle-class citizens, not as much for celebrities and big capitalists. As a tax paying labor / worker, one must feel like being contributing towards growth of fellow citizens in dire need and not forcefully extorted or looted by ruling elite & co for its own luxury – this largely depends on one’s mindset / ideology.

Before the creamy 5% anti-nationals dare to talk about taxing for AcheDin or appealing us to become flag bearing nationalists they must restart with the fact that more than 90% of workers here are into informal slavery… So first work towards rapidly reversing these damning numbers close to 95% formal and 5% informal, then all your economic jargon or financial sermons and AI rules may possibly stick to people’s conscience! If offer does not sound like a pet gu-type enterprise, just wind-up your democracy shops here and banish yourselves to an elite island of peace, Monaco is charming. More on tax?

Leave a Reply