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Who is Required to File Income Tax Return in India and Who is Not

Income Tax Law in India is much more complicated than any other country. Here, return filing under Income Tax Law is not mandatory for every Person. It has been based on many factors such as age, salary, residential status as well as income sources in any other country. Read the article below and know that who is required to file income tax return and who is not required to file an income tax return. 

Income Tax Act, 1961 has defined a basic exemption limit for Individuals and HUF. Therefore,  Individuals and HUF are required to file Income Tax Return only if their Gross Total Income exceeds such basic exemption limit.

Companies and Firms are mandatorily required to file Income Tax Return whether or not they have profit in such Financial Year. Let’s discuss more that who is required to file Income Tax Return mandatorily.

Who is Required to File Income Tax Return?

who is required to file income tax return

  1. An Individual who has not completed 60 years of age and whose GTI (Gross Total Income) without giving deduction u/s 80 is more than Rs 250000 is mandatorily required to file Income Tax Return.
  2. Individual over and above the age of 60 years i.e. senior citizen are mandatorily required to file Income Tax Return if their GTI (Gross Total Income) is more than Rs 300000 without giving deduction u/s 80.
  3. Individual who have crossed the age limit of 80 years i.e. super senior citizen are mandatorily required to file the Income Tax Return if their GTI (Gross Total Income) is more than Rs 500000 without giving deduction under Sec 80.
  4. Individuals who are required to carry forward their losses in the next Financial Year are mandatorily required to file Income Tax Return in order to claim the tax refund.
  5. Individuals who are possessing any signing authority in any of the foreign bank accounts are also required to file Income Tax Return whether or not their income is crossing the minimum slab rate.
  6. A resident individual who possesses a financial interest in any of the asset located outside India is also required to file Income Tax Return irrespective of his income.
  7. Even Individuals who have sold the Equity shares in a Company or unit of Equity Oriented Mutual Funds or Unit of Business Trust exceeding Rs 2,50,000 and made a gain which is exempt under Long Term Capital Gain are also required to file Income Tax Return.
  8. Foreign Companies who are availing any treaty benefit on any transaction made in India are also liable to file Income Tax Return in India.
  9. Beside Resident, NRI who have earned or accrued Gross Income in India exceeding Rs 250000 are mandatorily required to file Income Tax Return in India.
  10. Indian Banking Regulations has made it compulsory to show the ITR before availing any loan from the bank. Hence, if you are not following in any of the above categories but still required a loan from the bank, you should file ITR which will be treated as a  valid proof while applying for the loan.

You Can Fill Income Tax Return from here.

The persons who are falling in any of the above categories fail to file ITR within the required time limit are subject to some penalties.

Conclusion – In this article, we have covered all the categories of persons who are required to file Income Tax Return say it, Resident, Non-Resident, Seller of Immovable Property, Foreign Companies etc.

Hope you found the above article helpful. For much such informative contents stay in tune with CA Wizard and you can ask any query in the comment section given below.

ALso Know About the slabs of Income Tax – Rates and everything else.

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