Income Tax Return Filing Requirements:

1. Mandatory Filing Criteria:

   • Threshold: Income Tax return filing is mandatory if an individual’s Total Income exceeds the maximum amount not chargeable to income tax, which is Rs. 2,50,000 for individuals below 60 years.

2. Resident and Ordinary Resident in India:

   • Mandatory for individuals meeting any of the following conditions: a) Holds assets outside India. b) Is a beneficiary of assets outside India. c) Has signing authority in any account outside India.

3. Other Mandatory Cases Include:

   • Depositing over Rs. 1 crore in aggregate in Bank Current Accounts.
   • Depositing over Rs. 50 lakhs in one or more saving bank accounts.
   • Foreign travel expenses exceeding Rs. 2 lakhs.
   • Electricity consumption expenses exceeding Rs. 1 lakh.
   • Total Sales, Turnover, or Gross Receipts exceeding Rs. 60 lakhs.
   • Total Gross Receipts in the Profession exceeding Rs. 10 lakhs.
   • Total Tax Deducted and Collected at Source (TDS / TCS) is Rs. 25,000 or more (Rs. 50,000 for resident senior citizens).

Advantages of Filing Income Tax Returns:

1. Loan or Credit Card Approval:

   • Essential for future loan or credit card applications. Banks and financial institutions require ITR as a crucial document for processing.

2. Claiming Adjustment Against Past Losses:

   • If any losses are incurred by a business or individual, filing ITR is necessary to claim adjustments against those losses in subsequent years.

Additional Advantages:

• Avoid Late Fees (234F):

  • Timely filing helps avoid late fees under section 234F, up to Rs. 10,000.

• Avoid Tax Notices:

  • Regular filing reduces the likelihood of receiving tax notices.

• Claiming Tax Refund:

  • Filed returns facilitate the claiming of tax refunds, if applicable.

• Carry Forward Losses:

  • Enables the carry forward of losses (e.g., house property and depreciation) to the next financial year.

• Facilitates Financial Transactions:

  • Simplifies loan processing, including business and home loans.

• Credit Card Approval:

  • A filed ITR serves as a crucial document for obtaining a credit card.

• Study Loan and Foreign Visa:

  • Necessary as income proof and address proof for study loans and foreign visa applications.

Important Dates:

• The due date for Income Tax Return filing is 31st July 2023 for the Financial Year 2022-23 for individuals not required to get their books of accounts audited under any act.