Who should file an Income Tax Return (ITR)?​

There is a myth floating around in the market that a person is required to file an Income tax return (Commonly known as ITR) only when he has earned some income which is taxable. But this is not completely true. Today we are going to discuss the cases where income tax returns(ITR) are mandatory to be filed irrespective of whether the taxpayer has earned income or not. But before getting into the juicy part let’s first discuss what an Income tax return is?

What is an Income Tax Return?

An Income Tax Return (ITR) is nothing but a yearly statement filed before the tax authority every year reflecting the income earned by the taxpayers during the year along with the details of tax deducted and tax paid. This annual filing has its own reward and merits but let’s keep this topic for another article.

And as we were discussing unlike the common myth being floated following persons are mandatorily required to file the return:-

• A person whose income exceeds the basic exemption limit (BEL): The person whose total income in a year (financial year works from April to March) exceeds the Basic Exemption Limit is required to file their return. It doesn’t matter whether your income becomes taxable or not. If your income exceeds the threshold of the basic exemption limit then you are required to file the return.

Note: Following are the basic exemption limit notified by the government :

1. For taxpayers below the age of 60 years, the Basic Exemption Limit is 2.5 Lakh.
2. Taxpayers having the age of 60 or more but up to 80 years, enjoy the BEL of Rs 3 lakh.
3. And taxpayers who are above the age of 80 years enjoy the BEL of Rs 5 lakh every year.

i.e…, A taxpayer having the age of fewer than 60 years is required to file his return once his income exceeds 2.5 lakh in a year despite his income is not taxable.

• A person whose business turnover (or gross receipts from business) exceeds Rs 60 Lacs: A person is required to file the ITR if gross receipts from the business or sales turnover of his business exceed Rs 60 lakhs during the year.

• Professional whose business receipts exceed Rs. 10 lakhs during the previous year: A person who is a professional by profession (as per the income tax rules) must file his ITR compulsorily if his business receipts exceed Rs 10 lakh during the previous year.

• A person whose Tax is deducted or from whom tax is collected: A person whose tax is deducted at Source (TDS) or from whom tax has been collected at source (TCS) is required to file his ITR if the total amount of tax deducted and collected is Rs 25000 or more. This limit is Rs 50000 in the case of senior citizens.

• A person who has deposited more than Rs 50 lakh in Saving Bank Accounts: A person who has deposited the amount aggregating more than Rs. 50 lakhs in one or more of its saving bank accounts during the previous year is required to mandatorily file its ITR.

Note: Above list is updated frequently by the government to bring more people under the ambit of this law. So before proceeding with any action it is advisable to hire a professional to help you make an informed decision. And if you need assistance in any field of accounts, law and finance you may reach out to us.

You can always visit our website www.akcoindia.com/blog  for reading such important information. And if you feel you need any assistance then you may just mail us at contact@akcoindia.com.

You may find our other blogs below:

Key Changes in New notified ITR Forms: Click here
Annual Information System: Click here
All About PAN: Click here

Source Info: https://www.incometax.gov.in./