Income Tax Big Rule! These people can fill ITR without penalty, know the income tax rules related to it
Every year crores of people in the country file Income Tax Return. There are many of these people who are unable to file ITR within the time limit and pay a fine due to this. However, certain people are exempted from this fine under the Income Tax Act. These people can file ITR even after the deadline has passed without paying any penalty.
If we look at the Income Tax Rules, then those individuals whose total income is within the basic limit of exemption, they do not have to pay penalty for filing ITR even after the deadline.
What IT Rules Say About Basic Limit
As per the existing rules, the basic limit for exemption from income tax depends on which tax regime you have opted for. If you have opted for the new tax regime, then annual income up to Rs 2.50 lakh is exempt from income tax. This limit of exemption in this system is the same for taxpayers of all ages.
These people do not get exemption even if they have income in the basic limit
For taxpayers opting for the old regime, the basic limit of exemption depends on their age along with certain other conditions. In the case of taxpayers resident in India, the limit is Rs 2.50 lakh for those up to the age of 60 years. Senior citizens in the age group of 60 to 80 years get this exemption on income up to Rs 3 lakh and super senior citizens who are above 80 years of age up to Rs 5 lakh. All taxpayers falling under this purview can file ITR without penalty even after the deadline.
However, special taxpayers falling under this purview do not get this exemption. Those who have deposited one crore rupees or more in the current account of any bank, they do not get this exemption. Similarly, this condition is applicable to taxpayers who spend more than Rs 2 lakh on foreign travel and pay electricity bill of more than Rs 1 lakh. Taxpayers falling under this purview can avoid penalty only if they file ITR before the expiry of the deadline.
Taxpayers holding shares of a foreign company or any other foreign asset also do not get this exemption. It is mandatory for such taxpayers also to file ITR within the time limit.
ITR filing deadline is December 31
Overall, it is better to fill the ITR before the expiry of the ITR Last Date to avoid hassles. The deadline for filing ITR for the financial year 2020-21 has recently been extended to December 31.