ITR Filing 2025: There are many misconceptions about income tax returns. Some people think that returns cannot be filed if the deadline is missed, while some believe that gifts are always taxable. Know the truth of 6 such myths here.
ITR Filing 2025: There are many misconceptions about income tax. Some people think that only the rich have to pay tax, while some believe that gifts are always taxed. The reality is that there are many such myths, which are important to understand.
1. Only the rich have to pay tax
It is often believed that only the rich or big businessmen have to pay tax. But the reality is that income tax is applicable to all those people whose annual income is more than the exemption limit. This includes salaried people, freelancers, small businessmen and those who earn from investments. Therefore, tax is not limited to the rich only.
2. Every gift received from family is taxable.
A big misconception of many people is that gifts always come under the purview of tax. Whereas the truth is that gifts received from special relatives of the family like parents, siblings and spouse are completely tax-free. On the other hand, gifts received from non-relatives are tax-free only up to Rs 50,000. If you receive more than this, then the entire amount becomes taxable.
3. It is not necessary to make tax saving investments
Many people believe that investing to save tax is optional and there is no special benefit in it. But the truth is that if you do not invest under section 80C, you may have to pay more tax. Options like PPF, ELSS and LIC help in reducing your taxable income. With the right planning, you can save up to Rs 1.5 lakh every year.
4. You cannot file ITR if you miss the deadline.
Many people think that it is impossible to file ITR if the due date is over. But this is not so, you can file late returns till December 31. However, there may be a penalty and interest on this. Therefore, it is better to file the return as soon as possible.
5. ITR is not required if employer has deducted TDS
Many people believe that it is not necessary to file ITR when the employer has deducted TDS. But the truth is that it is your responsibility to file ITR if your income is above the basic exemption limit. TDS is only a form of advance tax. By filing ITR, you can claim refund and carry forward loss.
6. If you are not taxed then there is no need to file ITR.
There is a common misconception that if you are not taxed then there is no need to file ITR. But, this is not true. Even if your income is low, you can file zero ITR. This makes it easier to get a loan and visa. Along with this, your financial record is also created.
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