ITR Filing

Various Causes of ITR Filing for Individuals whose Income below the taxable Limit

ITR filing refers to the process of filing income tax returns (ITR) with the income tax
department of the government. It is an important compliance requirement for individuals,
businesses, and other entities that earn income in India. Taxation statements give
taxpayers the ability to determine their tax liability, pay obligations, or contest refunds as
necessary. In general, a person or business that got income during the season—
through wages, interest, dividends, capital growth, or other revenue—must file tax
statements annually with the government.

What is Income Tax?

The word “income tax” refers to a category of tax that governments levy on income
generated by enterprises and people under their authority. Taxpayers are required by
law to file an income tax return each year in order to establish their tax liabilities.

Governments receive funding from income taxes. They are used to pay for debts owed
to the government, fund public services, and supply residents with goods. Many states
and municipal governments impose income taxes in addition to the federal government.

What is Income Tax Return?

A document known as an income tax return (ITR) is used to submit data about your
earnings and taxes to the income tax division. A taxpayer’s tax obligation is determined
by factoring in their income. If the return reveals that too much tax was paid in a given
year, the taxpayer will be entitled to an income tax refund from the Income Tax
Department. Either an individual or a firm must file tax returns by a certain deadline. A
penalty must be paid by the taxpayer if the deadline is missed.

The government created India’s income tax laws. The government levies taxes on the
taxable income of all individuals, Hindu Undivided Families (HUFs), businesses, LLPs,
groups of people, local governments, and other artificial juridical entities.

Income Tax filing:

A taxpayer must report all of his income collected during the fiscal year through the ITR
filing process. Through the official portal of the Income Tax Department, people can file
their taxes. It has received notification in seven various ways.

Visit the official website of the Income Tax Department to submit an ITR. Nevertheless,
you must register before you can submit the IT Return online. The web platform for electronic
filing of income tax returns has recently undergone revision by the Income Tax Department (ITD)
of the Government of India.

How to File IT Returns?

Step 1: Use the methods indicated in the Income Tax Regulations to ascertain your tax

Step 2 : Go to your Form 26AS for a breakdown of your TDS payments for each quarter
of the assessment year in Step 2.

Step 3: Choose which group you will belong to based on the eligibility criteria listed by
the Income Tax Department (ITD).

Step 4: Visit the Income Tax Department’s official e-filing website at to complete your electronic filing.

Step 5: To register if you are a first-time user, click the “Register” button.

Step 6: If you have already registered with the website, just select “Login” from the

Step 7: Click the “File Income Tax Return” option under the “e-file” menu.

Step 8: Choose the appropriate category from the list on the internet, such as “person,”
“Hindu Undivided Family (HUF),” etc.

Step 9: Choose the best ITR Form for your circumstances.

Step 10: Your bank account details must also be entered. You will be asked to prevalidate the information if you have previously provided the same information.

Step 11: After that, you’ll be taken to a new online page where you may view the ITR’s
pre-filled information. Verify the information and make any required corrections. Validate
the form once you are convinced that all of the pertinent information is accurate.

Step 12: After the process is done, after that mail the returns to the IT Department

Income Tax Return is referred to as an ITR. It is a form that must be completed in order
to receive many rewards. This form contains details regarding the person’s income and
the taxes that must be paid within a fiscal year. An ITR’s data must be relevant to a
given fiscal year. As an illustration, the data in an ITR must cover the period from 1 April
2021 to 31 March 2022.

Individuals are required to file their income tax returns (ITR) even if their income is not
taxable. This is because the tax authorities use ITR to keep track of individuals’ financial
transactions and to prevent tax evasion.

Additionally, even if your income is below the taxable limit, filing an ITR can be
beneficial. It serves as proof of your income and can be useful when applying for loans
or visas, or when buying insurance policies.

As per the present income tax regulations, one is obligated to file an ITR if he either
fulfils certain income criteria or even if he does not complete the income criteria but still
needs to file an ITR if he is covered under some non-income criteria. Therefore based
on income criteria, a person is obligated to file his ITR if his income from all the sources
throughout a financial year exceeds the amount of basic exemption limit. The
fundamental exemption threshold is Rs. 2.50 lakh for individuals under 60 and Rs. 3
lakh for those between 60 and 80.

Although it is not required, filing an ITR is a necessary effort. It serves as evidence of
income. If you have an ITR, you won’t need to provide income documentation when
asking for government assistance. Together with this, submitting an ITR has a number
of additional advantages that are accessible to anybody.

The income-tax return filing may also be necessary while enjoying any tax treaty relief,
requesting repayment of excess withheld taxes, or while applying for a personal loan,

Let us see some reasons to file ITR if your income is not taxable:

  1. Compliance with the law: It is mandatory for individuals who meet certain criteria
    to file their Income Tax Returns (ITR) every year, regardless of whether their
    income is taxable or not. Failure to do so can lead to penalties and legal action.
  2. Claiming Refunds: Even if your income is below the taxable threshold, you may
    have paid taxes on your income through TDS (Tax Deducted at Source) or
    Advance Tax. Filing your ITR will enable you to claim a refund of any excess tax
    paid, which can be useful in managing your finances.
  3. Loan applications: If you need to apply for a loan, having a record of filing your
    ITR can improve your chances of being approved. This is because lenders use
    ITR as a proof of income and creditworthiness.
  4. Avoiding scrutiny: Not filing your ITR can increase the chances of being
    scrutinized by the tax department. Filing your ITR can help avoid such unwanted
    attention and scrutiny.
  5. Building financial credibility: Filing your ITR regularly, even when your income is
    not taxable, can help establish your financial credibility. This can be useful in the
    future if you decide to apply for a credit card or other financial products that
    require proof of income.

    As a result, before making any decisions, it is essential to carefully consider all the
    information above. In India, an individual taxpayer’s duty to file a tax return is not just
    based on gross total income.

    Therefore, even if your income is not taxable, it is recommended to file your ITR to stay
    compliant with the law and to benefit from the advantages of having a documented

    For detailed explanations and personal suggestions, you can contact
    and be stress-free rest of your life.

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