Filing of income tax return gives a legal sanction to your income. The income-tax act mandates a company and a firm to file its return of income no matter the turnover. A person other than company and firm is required to file a return of income if gross total income exceeds the maximum amount not chargeable to tax.
The gross total income of an assessee is the income before providing for deductions under chapter VI. This mainly includes the deductions availed by an individual towards contribution to medical insurance, contribution to provident fund, payment towards life insurance premium, the amount invested in other saving schemes like National Saving Certificates and Public Provident Fund to name a few.
According to the income tax act, the limit of maximum amount not chargeable to tax is Rs 250,000 in case of an individual (resident as well non-resident) and Rs 300,000 in case of every individual, who is of the age of 60 years or more but less than 80 years at any time during the previous year. For individuals above 80 years, this income limit is Rs 500,000.
Moreover, having a PAN card doesn’t mandate the filing of a return, if your income is less than the maximum exemption limit.
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What are the modes of filing income-tax return?
Return of income can be filed in paper mode or in e-filing mode. If income tax return is filed through electronic mode, then the assessee has to follow three option
1) E-filling using a Digital Signature
2)E-filling without a Digital Signature
3)E-filing under Electronic Verification Code (EVC)
If Income Tax return is filed using a Digital Signature or under Electronic Verification Code, then there is no requirement of sending the signed copy of ITR-V (acknowledgement of return filed electronically) to Bangalore CPC. However, if the return is filed without using Digital Signature or without Electronic Verification Code, the assessee shall send the signed copy of ITR V on the following address within 120 days of uploading the return either by ordinary post or by speed post only.
The address is CPC, post bag no 1, Electronic City Post Office, Bangalore- 560100, Karnataka.
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Is there an exception to electronic filing of return?
A person can furnish Income Tax return in paper form in ITR 1 or ITR 4 in any of the following circumstances:
1) The taxpayer is an individual with an age of 80 years or more during the previous year
2) The taxpayer is an individual, Hindu Undivided Family or partnership firm and the income during the previous year does not exceed Rs 5 lakh and no refund is claimed in the return of income.