I will complete 75 years on 07 July 24. If my income is only from Salaries and bank interest Do I have to file Return for FY 23-24

Ans: Senior citizen earning interest income from FDs/Dividend Income of Rs.6 lacs and eligible for deduction of Rs.1 lac on mediclaim; is not likely to pay any tax as income upto 5 lacs is eligible for rebate upto 10,000.

You can cross check https://incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx

Ans: An individual has to file his ITR irrespective of their income level :

- If an individual has deposited more than Rs 1 crore or Rs 50 lakh in one or more current and savings bank accounts, respectively.
- If an individual has incurred an expenditure exceeding Rs 2 lakh for himself or any other person for foreign travel.
- Has incurred an expenditure exceeding Rs 1 lakh toward electricity payment in a year.
- Is a beneficial owner or beneficiary of any asset outside India.
- Is a signatory to a foreign bank account.

Ans: Yes you should file ITR as it has multiple benefits

Ans: You have mentioned two income sources:

Salary + OT = Rs 5 lakh per year

Short-Term Capital Gains (STCG) in equity = Rs 2 lakh

Let’s understand if filing Income Tax Return (ITR) is compulsory in your case.

Income Tax Return Filing: Basic Rule

Filing ITR is compulsory if your total income exceeds the basic exemption limit.

For individuals below 60 years, the exemption limit is Rs 2.5 lakh under old regime.

Under new regime, it is Rs 3 lakh.

Your Income is Above Exemption Limit

You are earning Rs 5 lakh as salary. That itself is above the limit.

Even without the Rs 2 lakh STCG, you must file ITR.

So, yes, it is compulsory to file ITR in your case.

Even if TDS Is Deducted, You Must File ITR

Some people think if tax is already deducted, filing is not needed.

That is incorrect.

Even if your employer deducts TDS, or broker deducts STCG tax, ITR filing is still mandatory.

Capital Gains Reporting Must Be Done

STCG from equity mutual funds or shares is taxed at 20% as per new rule.

So, Rs 2 lakh STCG will attract tax.

You must disclose it while filing your ITR.

This avoids future notices and penalties.

Filing ITR Has Extra Benefits Also

Even if it was not compulsory, you should still file.

Helps while applying for visa

Required when applying for loans

Helps you track your financial growth

Useful for claiming refunds, if any

What If You Don’t File?

If you skip ITR, and income is above exemption, you can face:

Penalty up to Rs 5,000

Interest on due tax

Legal notice from IT department

Inability to carry forward losses

That’s why, best to file correctly and on time.

Finally

Yes, you must file your Income Tax Return.

Salary income is Rs 5 lakh. STCG adds Rs 2 lakh.

Total is Rs 7 lakh. This is above the exemption limit.

Filing ITR is compulsory for you.

File before due date. Report salary and capital gains correctly.

This keeps your record clean and helps in future planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment