ITR filing for Housewife - A Complete guide
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As a housewife, you might think, “Do I really need to file ITR? I don’t have a formal income.” Well, here’s the scoop: If you have any income, whether it’s from investments, property, or even a part-time job, you’re required to file your ITR. And guess what? Filing your ITR isn’t as daunting as it sounds.
Benefits of ITR filing for Housewife
- Access to loans for various purposes.
- Access to Life insurance policies.
- Claiming of losses
- Avoidance of penalties
- Claiming TDS refunds
Conditions of ITR filing for Housewife
New Tax Regime Thresholds:
- For housewives aged below 80 years, if their total income remains below Rs. 3 lakh, they are exempt from taxation. This means that if their earnings, whether from investments, rental income, or any other source, do not surpass this threshold, they won’t be liable to file ITR under the new tax regime.
Super Senior Citizen Category:
- If a housewife falls into the category of super senior citizens, i.e., those aged 80 years and above, the exemption limit is even more favorable. The minimum exemption limit for this category has been raised to Rs. 5 lakh under the new tax regime. This adjustment acknowledges the increased financial needs and reduced earning capacity that often come with advancing age.
Liability to Pay Taxes:
- Housewives, like any taxpayer, are only obligated to pay taxes if their total income from various sources exceeds the basic exemption limit set by the income tax. In this case, if a housewife’s combined income surpasses the specified thresholds mentioned earlier, she becomes liable to pay taxes as per the applicable tax rates.
Income tax slab for Women below 60 years (Old Regime)
| Income | Tax rates |
| Less than Rs.2,50,000 | 0% |
| Rs.2,50,000 – Rs.5,00,000 | 5% |
| Rs.5,00,001 – Rs.10,00,000 | 20% |
| More than Rs.10,00,000 | 30% |
Income tax slab for Women below 60 years (New Regime)
| Income | Tax rates |
| Less than Rs.3,00,000 | 0% |
| Rs.3,00,001 – Rs.6,00,000 | 5% |
| Rs.6,00,001 – Rs.9,00,000 | 10% |
| Rs.900,001 – Rs.12,00,000 | 15% |
| Rs.12,00,001 – Rs.15,00,000 | 20% |
| More than Rs.15,00,000 | 30% |
Income tax slab for Women Between 60 & 80 years
| Income | Tax rates |
| Less than Rs.3,00,000 | 0% |
| Rs.3,00,001 – Rs.5,00,000 | 5% |
| Rs.5,00,001 – Rs.10,00,000 | 20% |
| More than Rs.10,00,000 | 30% |
Income tax slab for Women above 80 years
| Income | Tax rates |
| Less than Rs.5,00,000 | 0% |
| Rs.5,00,001 – Rs.10,00,000 | 20% |
| More than Rs.10,00,000 | 30% |
Various Income sources for Housewives
Housewives derive their income from various sources, distinct from those of salaried or self-employed individuals. Here are some primary income sources for housewives:
- Fixed deposit interest-
Interest generated from fixed deposits is a common source of income for many individuals, including housewives. When you deposit money into a fixed deposit account with a bank, you earn interest on that amount over a specified period of time. This interest is considered a form of income and is subject to taxation.
- Saving bank interest –
Interest generated from Saving A/c is a common source of income for many individuals, including housewives. This interest is considered a form of income and is subject to taxation.
The taxation of interest from Saving A/c depends on the amount generated. There is an exemption limit of ₹10,000 per financial year under Section 80TTA of the Income Tax Act for interest income earned from Saving A/c.
Gifts –
Gifts are often a gesture of love and generosity, and while they may not always come with strings attached, they do have implications when it comes to taxation, especially for housewives.Â
Firstly, gifts received from specific relatives are exempt from taxation regardless of the amount. These relatives include parents, siblings, spouse, and lineal descendants and ascendants. So, if a housewife receives a gift from any of these relatives, whether it’s cash, jewelry, property, or any other asset, she won’t have to pay any tax on it.
However, when it comes to gifts from individuals who are not considered as specific relatives, there are tax implications. According to the Income Tax Act, if a housewife receives gifts from non-relatives exceeding the value of Rs. 50,000 in a financial year, the entire amount of such gifts is considered as her income and is subject to taxation.
For instance, if a housewife receives a gift of Rs. 60,000 from a friend or acquaintance during the financial year, the entire Rs. 60,000 will be added to her taxable income. She will have to pay taxes on this additional income as per the applicable income tax slab rates.
It’s essential for housewives to keep track of any gifts they receive, especially those exceeding the Rs. 50,000 threshold. While gifts from specific relatives are a welcome gesture without any tax implications, gifts from others may lead to additional tax liability. Therefore, it’s crucial to be aware of the tax implications of gifts and report them accurately while filing Income Tax Returns (ITR) to avoid any penalties or legal issues.
- Money received from household expenses-
Money received from household expenses is a common occurrence for many housewives. Often, husbands provide a monthly allowance or transfer funds to their wives to manage household expenses such as groceries, utility bills, children’s education, and other daily necessities. It’s important to understand the tax implications of such transactions, especially concerning whether this money is considered as the wife’s income.
In general, money received from household expenses by a housewife is not considered her income, even if the funds are transferred to her bank account by her husband. This is because household expenses are typically shared responsibilities within a family unit, and the funds provided by the husband are intended to cover these shared expenses rather than being payment for services rendered by the wife.
From a taxation perspective, the Income Tax Act does not classify money received for household expenses as income for the wife. Therefore, housewives do not need to pay taxes on these funds, nor are they required to report them as income while filing their Income Tax Returns (ITR).
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Documents required for ITR filing for Housewife
Personal Information:
- PAN (Permanent Account Number) card.
- Aadhaar card (for linking purposes).
Income Documents:
- Interest certificates from banks or post offices for interest income.
- Rental agreement and rent receipts for rental income.
- Statement of income from investments such as mutual funds, stocks, or bonds.
- Profit and loss statement if you have a business.
Deduction Documents:
- Receipts or proofs of investments made under Section 80C (e.g., PPF, LIC premiums, ELSS).
- Receipts for health insurance premiums paid (under Section 80D).
- Home loan interest certificate (if applicable).
Bank Statements:
- Bank statements showing transactions related to income and expenses.
Steps for ITR filing for Housewife
Now that we understand why ITR filing is important, let’s talk about how to actually do it. Here’s a step-by-step guide to help you through the process:
Gather Your Documents: Before you sit down to file your ITR, make sure you have all the necessary documents handy. This includes things like your PAN card, Aadhaar card, bank statements, and any documents related to your income.
Choose the Right Form: There are different ITR forms for different types of income. As a housewife, you’ll likely need to use either ITR-1, ITR-2 or ITR-4, depending on your sources of income. Make sure you choose the form that’s appropriate for your situation.
Declare Your Income: Once you’ve selected the right form, it’s time to declare your income. This includes any income you’ve earned throughout the year, whether it’s from investments, rental properties, or freelance work.
Claim Deductions: One of the perks of filing your ITR is that you can claim deductions for certain expenses. This includes things like health insurance premiums, education expenses, and contributions to retirement accounts. Make sure you take advantage of all the deductions you’re eligible for to lower your tax liability.
File Your Return:Â You can use the government’s e-filing portal or take our services.
Verify Your Return: After you’ve filed your return, don’t forget to verify it. This can be done electronically using your Aadhaar card, net banking, or by sending a physical copy of your ITR-V to the income tax department.
Conclusion
And there you have it – a simple guide to ITR filing for Housewife!
Housewives are generally exempt from paying taxes as they often lack direct income. Taxation only applies to income from other sources if it surpasses exemption limits. Filing ITR, even with no income, helps in loan applications, buying life insurance, etc
So go ahead, tackle that ITR filing with confidence!
You can contact us for any questions or ITR filing service!!
FAQs (Frequently Asked Questions)
Do housewives need to file income tax returns?
- Housewives are required to file income tax returns if their total income exceeds the basic exemption limit set by the government, which is currently ₹2.5 lakh per annum for individuals below 60 years of age under old tax regime, ₹ 3 lakh per annum for individuals below 60 years of age under New tax regime, ₹3 lakh per annum for individuals above 60 years but below 80 years of age under Old tax regime and ₹5 lakh per annum for individuals above 80 years of age under Old tax regime.
What are the common sources of income for housewives?
- Housewives may earn income from various sources such as interest on savings accounts or fixed deposits, rental income from properties, dividends from investments, and capital gains from the sale of assets.
How can housewives file their income tax returns?
- Housewives can file their income tax returns online through the Income Tax Department’s e-filing portal or by seeking assistance from chartered accountants.
Are there any deductions available for housewives?
- Yes, housewives can avail deductions under various sections of the Income Tax Act, such as Section 80C for investments in specified instruments like ELSS, PPF, NSC, etc., and Section 80D for health insurance premiums.
Do housewives need to pay taxes on gifts received?
- Gifts received from specified relatives like parents, siblings, or spouse are not taxable. However, gifts from others exceeding ₹50,000 in value in a financial year are taxable.
Is income received from household expenses taxable for housewives?
- No, money received from household expenses by housewives is generally not considered as their income for taxation purposes, as it is intended to cover shared household expenses rather than being payment for services rendered.
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