Income Tax Act allows a basic exemption limit of ₹2.50 lakh for taxpayers who are below sixty years of age. For those between 60 years and 80 years the applicable basic exemption limit is ₹3 lakh and those over 80 years it is ₹5 lakh.
My wife is a housewife and earns interest of ₹1,50,000 per year. Is she required to file her income tax return? Presently she does not file her income tax returns. Is it fine if she does not file her ITR?
-Rohit Malaviya
By Anjali Shah, tax and investment expert
I presume that interest is the only source of her income and she does not have any other income. Generally, one does not have to file Income Tax Return (ITR) as long as the aggregate of income from all the sources taken together before various deductions does not exceed the basic exemption limit. The basic exemption limits is ₹2.50 lakh for taxpayers who are below sixty years of age. For those between 60 years and 80 years the applicable basic exemption limit is ₹3 lakh and those over 80 years it is ₹5 lakh. So as long as your wife’s total income does not exceed the basic exemption limit applicable to her based on her age, there is no problem even if she does not file her return of income.
However there is no harm in filing the ITR as it may come handy while making visa application or for applying for home loan. Filing of your ITR helps you keep your records straight.
Please do not forget to furnish her PAN to the person from where she received the interest income. In case you fail to do so, the payer of interest will deduct tax @ 20% and then you will have to file return of income just to claim that refund.
(Views as expressed by the expert.)
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