Income Tax Return Filing

Dear Colleagues,

I retired on 31st March 2012. I have been regularly filing my tax returns until FY April 2011/March 2012. I have had no taxable income from April 2012 onwards. During FY 2012-13, I received my PF/Gratuity and LIC maturity amount, which are exempted from tax as per the rules.

Please advise: Do I need to file an income tax return for FY 2012-13?

Thanks for your valuable comments and advice.

Best regards,
Arbind

Hi,

How can I avoid tax deductions? Could someone please explain?

Dear Colleagues,

As per the rules, retirement benefits such as Provident Fund, Gratuity, and LIC maturity amounts are exempted from income tax, to the best of my knowledge. Now, if I do not have any taxable income, is it necessary to file an income tax return?

Please help.

Regards,
Arbind

Hi,

The amount received from PF/Gratuity/LIC maturity is exempted from income tax. However, the said amount will not be kept on hand by you; you might have invested it in a Fixed Deposit at a bank or elsewhere. The income generated from this amount will not be tax-free, and you will be liable to pay income tax on it, subject to the minimum income tax slab level. You will not be liable to pay income tax beyond this limit, but you will have to pay income tax and file your income tax return.

Thank you.

Dear Nilay,

Thanks for your valuable comment. I just want to know:

A. If my total income in a financial year, including interest from the bank, is below the taxable limit, do I still need to file an income tax return?

B. Do I have to show the PF/Gratuity and LIC maturity amounts to income tax (which are exempted)?

Best regards,
Arbindsha

Dear Arbindsha,

If your income is below the taxable limit, you do not need to file the IT return. However, it is advisable to file your IT return showing your income for a particular financial year. The amount you have received from PPF/Gratuity/LIC needs to be shown in your Gross Income Statement. Since these amounts are exempted from IT, they will be deducted, and your Net Income Statement will not be impacted by them.

Regards,
Nilay