s the question on your mind whether or not you have to file a return?
Chances are that the answer is a resounding yes.
But just to get your doubts cleared, read on.
Basically, an income tax return is just a self declaration made by an individual stating all the income he earns during a particular year.
It also includes the losses incurred (sold some shares at a lower price than what you purchased?)
Depends on your salary
Any individual earning income more than Rs 50,000 a year needs to file an income tax return.
For the next financial year (April 1, 2005 to March 31, 2006), the minimum level has gone up to Rs 100,000.
Depends on your expenses
If you fall in the one-by-six category, you will have to file a return. Even if you are earning less than the minimum criteria mentioned above.
It means that if you qualify for any of the below, you file a return.
i. Own a motor vehicle (even a motorbike or scooter)
ii. Own immovable property (land or a home)
iii. Foreign travel (made a trip abroad this year?)
iv. Have a cellular phone (that got you, didn't it?)
v. Hold a credit card (he does not mean an add-on credit card)
vi. Member of a club with an entrance fee over Rs 25,000
Well, that was for this financial year (April 1, 2004 to March 31, 2005). What about next year?
The cellular phone criteria has been removed. Nope, you need not file a return just because you own a cell phone.
It has been replaced by another criteria. If your electricity bill is Rs 50,000 per year or more.
What if my employer deducts tax?
That still does not exclude you. Even if you are a salaried individual whose employer has already deducted tax, you will still have to file your return.
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