Income Tax Act, 1961, has mandated every person whose gross total income is more than prescribed limit to file Income Tax Return. The main object of filing ITR is to disclose the total gross income earned during a financial year and the tax liability (if any) thereon has been paid. Thus, it is pertinent to understand that who needs to file ITR?
Who are required to file ITR?
If you are searching for who are required to file ITR or who have to file ITR then you are at the right platform. It is mandatory to file ITR for following persons –
- Company
Company has to file ITR every year irrespective of the amount of profit/loss earned during a financial year.
- Partnership Firm
Partnership Firm has to file ITR every year irrespective of the amount of profit/loss earned during a financial year
- Individual (Resident of India)
If gross income is more than the basic exemption limit-
| Age Group | Basic Exemption Limit |
| Below 60 years of age | 2.5 Lakhs |
| Between age group of 60 years and 80 years | 3 Lakhs |
| Above 80 years | 5 Lakhs |
4. Income Tax Refund
If any person who wants to claim the Tax Refund of the TDS deducted then he has to file ITR.
5. Carry Forward Loss
If any person wants to carry forward a loss in the financial year then he is required to file ITR.
6. Resident of India having Assets outside India
If any individual who is Resident of India and possess assets or any other financial interest in any business structure located outside India then it mandatory for him to file ITR.
7. Any person who is Resident of India and a signing authority in a foreign account.
8. It is mandatory for a person to file ITR who has received income derived from property held by a trust for charitable or religious purposes or research association or political party, educational or medical institution, news agency, trade union, hospital, infrastructure debt fund, body or trust, not for Profit University or educational institution or any authority.
9. Any foreign company which is seeking treaty benefit on any transaction occurred in India.
10. In many cases, a proof of Income Tax Return filing is required in order to apply for a loan or a visa thus if any person want to apply for the same has to mandatorily file ITR.
11. Persons having gross income less than basic exemption limit
- If the person has deposited more than Rs. 1 Crore in one or more than one current bank account in the previous year.
- If the person has deposited more than Rs. 50 lakhs in one or more than one savings bank accounts in the previous year.
- If the person has paid electricity bill of more than Rs. 1 lakh in the previous year.
- If the person spent more than Rs. 2 lakhs on foreign travel in the previous year.
- If TDS/TCS exceeds Rs 25,000/- in the previous year.
- If the person is engaged in business and its turnover has exceeded Rs 60 lakhs in the previous year.
- If the person is engaged in profession and received gross receipts of more than Rs 10 lakhs in the previous year.
Consequences of not filing ITR
Section 234F was introduced in Income Tax Act, 1961 to levy penalty for late filing of Income Tax Year. According to Section 234F and other penal provisions, if any person who is mandatorily required to file ITR has failed to file it then he shall be liable to pay penalty as prescribed by Income Tax Act.
Every person who files ITR after the prescribed due date shall be liable to pay penalty of Rs. 5000 in Non-Tax Audit Cases and Rs. 10,000 in Tax Audit Cases.
We hope all of your doubts relating to who needs to file ITR? and who have to file ITR? are solved. In case of any further doubts then contact your Trustworthy Advisors Manthan Experts by dialing at +9643-969-969 or mail at info@manthanexperts.com.