Why ITR is required to be filed ?
Filing returns or not has never been a choice – it’s a legal obligation and must be fulfilled by everyone who falls under the following:
- If gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs.2,50,000 in the financial year. This limit is Rs 3,00,000 for senior citizens ( who are more than 60 years old but less than 80 years old) and Rs 5,00,000 for super senior citizens (who are more than 80 years old)
- If you are a company or a firm irrespective of whether you have income or loss during the financial year
- If you want to claim an income tax refund.
- If you want to carry forward a loss under a head of income.
- If you are a Resident individual and have an asset or financial interest in an entity located outside of India. (Not applicable to NRIs or RNORs).
- If you are in receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
Apart from legal obligation, filing tax returns is helpful in following situations:
- To get a home or personal loan
- For easy visa and immigration processing
- It can be used as a proof of income/ net worth certificate
- To claim excess tax paid via refund