DO HOME-MAKERS WITH ZERO INCOME NEED TO FILE ITR??

[D. Saha & Co.]

DO HOME-MAKERS WITH ZERO INCOME NEED TO FILE ITR??

-   By Team of D.Saha & Co.

When your income exceeds a specific threshold, you must pay taxes on it and for that, you have to file income tax returns (ITR) as under section 139 (1)(b) of Income Tax Act, 1961.

A)   Individual is required to submit her return of income, if income [without claiming deduction under sections 10A, 10B, 10BA, 80C to 80U, and under section 54/54B/54D/54EC/54F/54G/54GA/54GB] exceeds the amount of exemption limit].

B)   Exemption limit for the assessment year 2023-24 is Rs. 2,50,000 [higher exemption limit (a) in the case of a resident senior citizen born on or after April 2, 1943 but on or before April 1, 1963 : Rs. 3,00,000; and (b) in the case of a resident super senior citizen born on or after April 1, 1943 : Rs. 5,00,000]. In the case of an individual (who has opted for alternative tax regime under section 115BAC), exemption limit is Rs. 2,50,000 (irrespective of his age).

Exemption limit for the assessment year 2024-25 under the alternative tax regime under section 115BAC (which is default tax regime) is Rs. 3,00,000 (irrespective of her age). If the assesse has opted for the regular tax regime, exemption limit is Rs. 2,50,000 [higher exemption limit (a) in the case of a resident senior citizen born on or after April 2, 1944 but on or before April 1, 1964 : Rs. 3,00,000; and (b) in the case of a resident super senior citizen born or before April 1, 1944 : Rs. 5,00,000].

C)   Compulsory filing of income-tax return in relation to assets located outside India – In the case of a resident person (but other than not ordinarily resident), it is mandatory to furnish return of income (from the assessment year 2016-17) if she at any time during the previous year,-

    a. holds (as a beneficial owner or otherwise) any asset (including financial interest in any entity) located outside India or has signing authority in any account located outside India, or

    b. is a beneficiary in any asset (including any financial interest in any entity) located outside India.
For any person (maybe individual or a person other than individual) who satisfies the above conditions, furnishing of return has become mandatory, irrespective of the fact whether the person has taxable income or not.

As per the Income Tax Department, a total of 6.8 crore ITRs have been submitted till July 31 which is an increase of 94 lakhs or 16.1% over and above last year numbers, out of which 53.7 lakhs are by first-time Assessees. Filing an ITR is critical for every person, which also includes housewives who do not have a regular source of earnings. In some cases, housewives may receive from various sources such as interest on FDs or rental income even if they do not have a job or a business and have no primary source of earnings.

But in some cases, housewives may not have a personal source of income and hence, they don’t file ITR. But we suggest that they should nevertheless file Income Tax Returns.

A homemaker who has an income of less than Rs. 3 lakh would not be taxed under the revised tax system. According to the new tax system, the minimum deduction has been raised to Rs. 5 lakh if a housewife is considered a super senior person, meaning she is 80 years of age or more.

Let’s have a look into the scenarios in which a housewife should file ITR:

Income From Investment

To have financial stability or to reduce the household’s financial burden, the parent or husband may have placed an investment in the name of a housewife. These investments in bank accounts, mutual funds, equities, etc. may accumulate over time and produce sizable income. And in case the returns on these investments under a housewife’s name are taxable, ITR must be filed.

Interest From Fixed Deposits Or Gifts Received

FD interest is taxable as per the slab rate. Hence, ITR is required to be filed in case interest income is more than Rs. 2.5 lakh. Apart from FD, if the home maker has invested the sum in any other instrument ad earnings from it is above the exemption limit, she will have to file ITR. Gifts received from specified relatives on certain occasions are not included in taxable income irrespective of the quantum of the gift amount.

Benefits of Filing ITR with No Liable Tax

Even if you are a stay-at-home mother or housewife without a reliable source of income or zero income, filing an income tax return makes it simpler for you to get a loan. You must file ITR for at least three consecutive years to be eligible for a loan. When taking house loans in the name of a woman, many banks provide a reduction in the interest rate. Your ITR serves as evidence of your income that the bank can use to determine your eligibility.
Not only is it simpler to obtain a loan, but also to receive a TDS refund. Another benefit of providing ITR evidence when requested by authorities is the eligibility to apply for a visa and the ITR documents play a crucial role in getting a visa. In these circumstances, a NIL ITR needs to be filed.



Disclaimer :- (You are advised to consult your Legal Counsel before taking any decisions. This is issued only for the purpose of public awareness and information. The Contributor or any of his employees/associates will not take any responsibility for any actions of the reader based directly or indirectly on the basis of the above Article.)

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