Minimum taxable income in India?

[jaya06]

Hi all,

I would like to know the maximum amount of income one could earn without paying income tax. My MIL is 69yrs old, widow, all children married and settled in India except my husband who is in USA, visited USA 6yrs ago and left back to India in 4 months before the expiration of I-94, visa denied for 3 times in the past 2 years. My MIL has a home of her own and she rented a portion of it which is her 'only' income. We are planning to prepare a property affidavit with the rental income (Rs.5000/- per month). I was wondering if the visa officer will ask for any tax returns. If this amount is less than the 'minimum required to pay taxes' then she would be safe - otherwise we rather will not mention about the rental income in any documents. I wanted to know the 'facts' on income tax so we could act accordingly.

Question: Would one have to pay taxes if the income is only Rs.5000/- per month.

Any input would be very helpful.. thank you all in advance..

- Jaya.

[rashy]

Hi

Until I was in India ,if the gross annual salary is less than or equal to Rs 60,000 ,then the assesee is exempt from paying income taxe.In cas if she has other approved investments to claim a rebate or has incurred expenses on the maintenence of the property in the financial year,she can claim such deductions in which case her taxable income would be even less.She is exempt from taxation ,nevertheless.

[jaya06]

Hi Rashy,

Thanks a ton for the detailed reply. It is very helpful for me. May I ask you two more questions if you don't mind:

1) If the gross income is less than 60K per annum, does one have to file a income tax return with Rs.0/- as the tax OR can the person completely get away from tax return hassle? My MIL never filed tax returns and doesn't have any documentation. When my FIL was alive, he used to file tax returns but those documents are more than 10 yrs old.

2) Can you tell me approximately in which year (when you were in India) was the limit set at Rs.60K? Approximately...

Thank you very much for the timely reply.

- Jaya.

[Din009]

1) If the gross income is less than 60K per annum, does one have to file a income tax return with Rs.0/- as the tax OR can the person completely get away from tax return hassle?

Ans : You need not and you can not !

The limit is 1 Lakh for Individuals (for females, it is 1.35 Lakhs). If it exceeds 1 lakhs (exceeds 1.35 for women), we have to pay tax of 10% (till 1.5 lakhs).

For example, if the income is 1.4 Lkah, he should pay Rs.4000 ( that is 10% of 50,000) and should file the returns. If that is a woman, she need to pay only Rs.500 (that is 10% os 5,000 as limit is 1.35 lakhs for them)

In your case, that is 60,000 an year, there is no need to pay the tax / file the returns. Actually, from this year you can't file returns if there is no taxable income.

2) Can you tell me approximately in which year (when you were in India) was the limit set at Rs.60K? Approximately...

Ans: AFAIK, Up to 2004, it was 60K. With the budget in 2004, it (min) became 1 lakh


Related

http://incometaxindia.gov.in

http://www.taxmann.net

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[jaya06]

Dino09,

Thank you very much for the detailed reply. This is what I am looking for.

We will write the rental income in my MIL's property affidavit and educate my MIL to answer the tax question accordingly if at all she is asked about tax documents.

This info is very useful for us - and is just in time for us to prepare my MIL for her upcoming interview on 11/27 (4th attempt).

I will keep you all posted on the result.

- Jaya.