Under Income Tax any person can file his Income Tax Return, even if his income is below taxable, but Income Tax Act prescribes a list of the person who is mandatorily required to file his Income Tax Return. Under this post, we will discuss the ITR filing eligibility of a person who is required to file Income Tax Return.
Who is required to file Income Tax Return?
Here is the list of the person who is required to file Income Tax Return.
👉 In the case of an Individual, if your gross total income (before allowing any deduction under section 80C to 80U) exceeds Rs. 2,50,000 lakhs in FY 2020-21, (this limit is Rs. 3 Lakh for senior citizens and Rs. 5 Lakh in case of a super senior citizen) then you are mandatorily required to file your Income Tax Return. (If assessee opt Old Tax Regime)
Read Here- Current Income Tax Slab For Individual Assessee: Old and New Tax Regime
👉 Return filing is mandatory if you are a resident individual and have assets or financial interest in an entity located outside of India. (But not applicable to NRI and RNORs)
👉 You are also required to file his return of income in India if you are a resident and have signing authority in a foreign account. (But not applicable to NRI and RNORs)
👉 You are mandatory required to file an Income Tax Return when you are in receipts of Income derived from property held under a trust for charitable or religious purpose or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institutes, a hospital, infrastructure debt fund, body or trust.
Also Read:- Know about Types of Income Tax Return Forms, Which ITR should you file?
👉 For NRI, any individual whose income exceeds Rs. 2.5 Lakh (FY 2019-20) is required to file an Income Tax Return n India. It may please be noted that for an NRI, income earned or accrued in India is taxable in India.
👉 If you want to claim an income tax refund then it is mandatorily required to file Income Tax Return.
👉 You want to carry forward forward a loss under a head of Income.
👉 Proof of return filing may also be required at the time of applying for a visa and credit card.
👉 For Companies and partnership firms, irrespective of their income or loss, they are mandatorily required to file their Income Tax Return.
👉 If you are a foreign company and taking treaty benefits on a transaction in India.
Benefits of Filing ITR
Even though filing of ITR is not mandatory for all the person but if you file your Income Tax Return there are certain benefits which one can avail. In the above heading you read about the number of persons Who is required to file Income Tax Return, if you want to know the benefits of filing Income Tax Return, you can read the below-mentioned article.
Read Here- Benefits of Filing ITR- File your ITR to get these benefits
Penalty for Late filing of ITR
For every assessment year, the last date for filing your Income Tax Return is 31st July for the non-audited assessee, and for the audited assessee, the last date is 31st October (Unless Extended). Still, if you are not able to file your Income Tax Return in time then the Income Tax Department will penalize you and imposed a Penalty for late filing of ITR
Read Here- Interest and Penalty for late filing of ITR
Frequently Asked Questions- FAQs
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Who is Obligated to File a Tax Return?
Under Income Tax any person can file his Income Tax Return, even if his income is below taxable, but Income Tax Act prescribes a list of the person who is mandatorily required to file his Income Tax Return.
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Is it Mandatory to file ITR?
who is required to file income tax return- In the case of an Individual, if your gross total income (before allowing any deduction under section 80C to 80U) exceeds Rs. 2,50,000 lakhs in FY 2020-21, (this limit is Rs. 3 Lakh for senior citizens and Rs. 5 Lakh in case of a super senior citizen) then you are mandatorily required to file your income tax return. (If assessee opt Old Tax Regime)
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What is the Minimum Income to File ITR?
In the case of Individual, if your gross total income (before allowing any deduction under section 80C to 80U) exceeds Rs. 2,50,000 lakhs in FY 2020-21, (this limit is Rs. 3 Lakh for senior citizens and Rs. 5 Lakh in case of a super senior citizen) then you are mandatorily required to file your income tax return. (If assessee opt Old Tax Regime)
Also Read- Standard Deduction For Salaried Individuals and Pensioners
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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.
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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)