Why You Should Invest In Income Tax Return Filing By Sangam Arodiya


Dear CC Readers,

Before we get into the details of who is required and who is not required to file an income tax return?

Let us understand what is filing an income tax return and why is it required.
 
What is the filing of income tax returns and why is it required?

Filing of the income tax returns (ITR) is a statement of your income across different sources, tax liabilities, the tax that has been paid and the refunds (in case any) that the government is supposed to give.

Filing of the income tax provides proof for your income as legal and disclosed.

Who is required to file ITR?

If you fall in any of the following criteria, then you are required to file income tax return:

  • If you are less than 60 years of age and your total annual gross income exceeds Rs. 2,50,000.
  • If you are senior citizens. 60 years or above and below 80 years of age, and your total annual gross income exceeds Rs 3,00,000.
  • If you are super senior citizens. 80 years or above and your total annual gross income exceeds Rs 5,00,000.
  • If you are a company or a firm, then irrespective of whether you have profit or loss, filing ITR for the financial year is a must.
  • If you are looking forward to claiming a tax refund for the financial year.
  • If you are an Indian resident and act as a signing authority for any foreign account.
  • If you are an Indian resident and possess an asset or financial interest located outside India.
  • If you have sold equity shares in a company or unit of equity oriented mutual funds or unit of business trust for more than Rs.2,50,000 and have gained tax-exempt long-term capital gains from the same.
  • If you receive any income derived from the sale of a property which had been held under a charitable trust, religious trust, political party, educational institution, any authority, body or trust.

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