ITR filing season: Who is exempted from filing ITR and doesn't pay fine too? Know everything here
ITR filing season: Under Section 194P, people above 75 years of age are also exempted from filing ITR, as per the Income Tax Department. However, it also has some conditions.
ITR filing season: As income tax filing season is going on, everyone who is eligible to file an ITR is rushing to file an ITR. However, two types of people are exempted from filing ITR and will not be fined either.
Tax-free state in India
Additionally, there is a tax-free state in India. Sikkim is the only state in India whose inhabitants are free from income tax under Article 371(F) of the Indian Constitution and Section 10(26AAA) of the Income Tax Act of 1961. This implies that even if people make crores, the I-T agency does not collect any taxes from them.
Who is exempted from paying tax?
Let's know about these people who are free from paying income tax.
First person
If your earnings are within the income tax exemption limit, then you are exempted from filing ITR according to the Income Tax Department.
Keep in mind
Here, we are talking about your earnings, not the taxable income after taking various types of deductions. If your income exceeds the tax exemption limit, then you must file an ITR.
Who is the second person exempted from paying tax?
Under Section 194P, people above 75 years of age are exempted from filing ITR, as per the Income Tax Department. However, it also has some conditions.
What are the conditions?
It is important that the senior citizen should be a citizen of India in the previous year.
Senior citizen's income
Besides, it is also important that the senior citizen's income should be coming from pension income and the interest earned on it by keeping it in the bank. It is also important that the pension comes in the same bank account.
Why filing an ITR is important?
It helps you to get a refund if you have paid a higher income tax than your liability.
ITR filing helps in many ways
Besides, it also helps you to avail of a loan as the lenders may ask for a copy of your ITR filing.