Do I need to file income tax if I am not working in India?

NRI or not, any individual whose income exceeds Rs 2,50,000 is required to file an income tax return in India.

Do you pay income tax if you don’t work?

If you didn’t earn any income in the last tax year, you’re not obligated to file a tax return. Refundable tax credits can provide you with a tax refund even when you do not work. For example, you may qualify for the Earned Income Tax Credit or the Additional Child Tax Credit, which are refundable tax credits.

What happens if I don’t have money to pay income tax in India?

For non filing of your ITR, the tax department can levy penalty a minimum penalty equal to 50\% of the tax which would have been avoided by you, in addition to the liability to pay the interest till the date you ultimately file your ITR after receiving notices from tax department.

Is it necessary to file the return of income when I do not have any positive income?

Is it necessary to file return of income when I don’t have any positive income? You must file your return before the due date, if you have sustained loss in the financial year and if you want to carry forward it to the subsequent year for adjustment against subsequent years positive income.

Is income tax return mandatory?

It is mandatory to file the income tax returns online for all the registered taxpayers whose taxable income. However, paper returns can be filed by those who are above 80 years of age and do not have any income from regular business or profession.

Do I have to pay taxes?

You must file a 2018 return if: You had more than $1,050 of unearned income (typically from investments). You had more than $12,000 of earned income (typically from a job or self-employment activity). Your gross income was more than the larger of $1,050 or earned income up to $11,650 plus $350.

Why we should pay tax?

Taxes put out fires, keep our streets safe, provide our children with education, provide our families with health care, ensure our food and water are safe, create legal safeguards for businesses and employees, provide parks – in other words, provide us benefits every hour of the day, every day of the year. 3.

What happens if we dont file ITR?

If an individual misses the income tax return (ITR) filing deadline (i.e., December 31, 2021 for this year), then he/she will have to pay a penalty at the time of filing belated ITR. (Click here to find out how much penalty one will have to pay for missing the ITR filing deadline.)

What happens if income tax return is not filed?

Until assessment year (AY) 2017-18, there was no penalty for filing belated income tax returns. However, this penalty is applicable from AY 2018-19. A new, section 234F, was inserted by the government into the Income-tax Act, 1961. This section was further amended in Budget 2021.

Why do you need to file income tax in India?

To make things easier, we have highlighted 13 reasons why you need to file income tax in India. Read them all here. One good reason to file an income tax is to help the government decide the means and amounts of expenditure of citizens. When the government has realistic data, it helps in creating citizen-friendly policies.

How do I avoid paying taxes in India?

Hari om , you are asking a question as to : “How do I avoid paying taxes in India?.” You can save another Rs.50,000/- p.a. in NPS u/s 80 CCD1 (B) – which is additionally exempted from taxable income. upto a taxable income of Rs.2,50 000/- per annum – no tax is payable.

Is paying your fair share of income tax in India worth it?

However, most Indian taxpayers, including people with moderate annual income, understand that paying their fair share of income tax is simply the price of living in India with its many benefits.

Why don’t more Indians pay income tax?

There are many reasons for this. Part of it has to do with the fact that many Indians do not earn enough annual income to even qualify to pay income tax, but a larger factor has to do with lack of tax culture, as also India’s huge rural and underground economies.