Case 1 : Income itself is below exemption limit ;
In that case, you don’t pay tax & don’t file your Returns.
Case 2 : Your Income exceeds your exemption limit , but not taxable income;
Though your Income exceeds exemption limit, but After all the exemptions & deductions like 80C investments , HRA , Home loan interest exemption etc etc , your taxable income is below your exemption limit . In this case you don’t have to pay tax , BUT !! ; you have to file tax returns because, your income (not taxable income) was above the exemption limit;
What are the other Exp/cases when I have to file the returns ?
There are other cases also when you have to file the returns more than paying tax . lets see those cases;-
• If Govt. itself gives you notice to file tax return , it may happen when you are cheating this nation and making black money , then tax department can ask you for details & you will have to file tax return ;
• If you have some form of losses carried forward in subsequent years to write off against profits in future , in that case it is obvious , that you will have to file a return so that you can give this information correctly;
• If you want a Tax refund because of TDS , This happens with people who do part time jobs for some months or/ with Interns in the company who are there for 3 months or 6 months & TDS is cut . thus in order to get back the amount you have to file a tax return ;