Important Keyword: e-File ITR, Income Tax Filing, ITR Utility, Slab Rates.
Table of Contents
Who should file Income Tax Return (ITR)?
Filing your Income Tax Return (ITR) is not just about meeting the basic exemption limit; there are specific scenarios where it becomes mandatory, regardless of your income level.
When is it Compulsory to File ITR?
Under certain conditions, filing your Income Tax Return (ITR) is mandatory, regardless of whether your income exceeds the basic exemption limit. One such condition is if your Gross Total Income for a financial year surpasses the basic exemption limit. The Gross Total Income refers to the total income before claiming deductions such as those under sections 80C, 80D, and 80TTA of the Income Tax Act. This means that even if your taxable income after deductions falls below the basic exemption limit, you are still required to file an ITR if your Gross Total Income exceeds the specified threshold. It’s essential to adhere to these guidelines to ensure compliance with tax regulations and avoid any potential penalties or legal consequences.
| Category | Basic Exemption Limit |
| Individual/ HUF (Resident/ NRI) | INR 2,50,000 |
| Resident Senior Citizen Individual (60 years or more but less than 80 years) | INR 3,00,000 |
| Resident Super Senior Citizen Individuals (80 years or more) | INR 5,00,000 |
Any resident individual or entity falling under the following scenarios must file an Income Tax Return (ITR):
- Ownership of Foreign Assets: Individuals possessing assets outside India or holding financial interests in entities located abroad are obligated to file an ITR.
- Foreign Income: If an individual earns income from a source outside India during the financial year, they are required to file an ITR.
- Signature Authority: Individuals with signature authority in any bank account situated outside India must file an ITR.
- Claiming Refund: Taxpayers seeking a refund of excess Tax Deducted at Source (TDS) need to file an ITR.
- Loss Adjustment: Taxpayers incurring losses during the financial year and intending to carry them forward to subsequent financial years are mandated to file a return.
Additionally, the following prerequisites must be met before filing an ITR:
General:
- Registration on the e-Filing portal with a valid user ID and password.
- Active status of PAN.
Others:
- Linking PAN with Aadhaar.
- Pre-validating at least one bank account and nominating it for refunds.
- Valid mobile number linked with Aadhaar, e-Filing portal, bank, NSDL, or CDSL.
- Downloading the offline utility or utilizing third-party software if opting for offline mode.
Moreover, certain situations necessitate mandatory e-filing of returns:
- Claiming a tax refund.
- Gross total income exceeding INR 5,00,000.
- Requirement to file ITR-3, ITR-4, ITR-5, ITR-6, or ITR-7.
Read More: How to file Belated Return u/s 139(4)?
Web Stories: How to file Belated Return u/s 139(4)?
Official Income Tax Return filing website: https://incometaxindia.gov.in/
