Does a merchant benefit from a separate tax exemption limit?
I am a trader, what is the income tax limit for traders? Do I have to file my RTI return?
There is no distinction regarding the income tax payment limit depending on whether you are an employee or a trader. The only distinction is based on age. For all people who are or have turned 60 during the year, the threshold limit is 3 lakhs while for those below this threshold it is 2.50 lakhs per year. For those who have reached the age of 80 by March 31, the basic exemption limit is 5 lakhs.
As there is no distinction between traders and other categories of taxpayers, a trader will also have to file his income tax return if his total total of all his income before deducting items such as PF, NSC PPF, LIP, home loan repayment, mediclaim premium etc. is greater than the minimum threshold mentioned above. The due date for filing the return is typically July 31, which has been extended to December 31, 2021 this year in case your accounts should not be audited.
Please note that if the total turnover of the trader exceeds the specified limits during the fiscal year, the trader must have their accounts audited by a certified public accountant and obtain an audit report no later than one month before the due date. deadline for filing the RTI. A trader must offer income in the form of a certain specified percentage of his sales. However, if his net profit is less than the specified percentage of turnover, he must have his accounts audited even if his turnover is below the specified limits. Please note that this year February 15th is the deadline for filing an ITR for the trader in case their accounts need to be audited.
Balwant Jain is a tax and investment expert and can be reached on email@example.com and @jainbalwant on Twitter.
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