Who should file Income Tax Returns?

Who should file Income Tax Returns?

According to the Income Tax Act, income tax has to be paid only by individuals or businesses who fall within certain income brackets. Mentioned below are entities or businesses that are required to compulsorily file their ITRs in India:

All individuals, up to the age of 59, whose total income for a financial year exceeds Rs 2.5 lakh.

For senior citizens (aged 60-79), the limit increases to Rs. 3 lakh and

for super senior citizens (aged 80 and above) the limit is Rs. 5 lakhs.

It is important to note that the income amount should be calculated before factoring in the deductions allowed under Sections 80C to 80U and other exemptions under section 10.

All registered companies that generate income, regardless of whether they've made any profit or not through the year.

Those who wish to claim a refund on the excess tax deducted/income tax they've paid.

Individuals who have assets or financial interest entities that are located outside India.

Foreign companies that enjoy treaty benefits on transactions made in India.

NRIs who earn or accrue more than Rs. 2.5 lakh in India in a single financial year.

Benefit of IT Filing

  • Regarded as a proof of doing business

  • Serves as a primary document in acquisition of Loans

  • Avoid Penalties on non-compliance

  • Helps Claiming Deductions

  • Helps in obtaining Visa

  • Losses can be Carried Forward.

Documents required for IT filing

Bank statement/passbook for interest on a savings account.

Interest income statement for fixed deposits.

TDS certificate issued by banks and others.

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