WHO IS REQUIRED TO FILE INCOME TAX RETURN (ITR)
-
Income Tax Return Filing Requirements:
-
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.
-
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.
-
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:
-
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.
-
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.
-