If you are an Indian citizen and your gross total revenue exceeds the taxable limit in a monetary year, then you are essential to file your revenue tax return (ITR) for that year. Similarly, these whose revenue does not exceed the taxable limit in a monetary year are ordinarily not essential to file their return of revenue. However, this may perhaps not be accurate in all the circumstances and some people today may perhaps be essential to file ITR even if their gross total revenue does not exceed the taxable limit.
Let’s take a appear at the categories of men and women who are mandatorily essential to file the tax return irrespective of their revenue threshold.
“The general obligation to file an income-tax return by an individual arises if the gross total income (before claiming the specified deductions /exemptions) exceeds the basic exemption limit of Rs 2,50,000 during a particular financial year,” says Akhil Chandna, Associate Partner, Grant Thornton Bharat LLP.
However, if the above revenue threshold is not met, then an person may perhaps be obliged to file the revenue-tax return in particular circumstances specified in the law as beneath:
# Individual holding any asset (like monetary interest in any entity) situated outdoors India or
# Individual possessing signing authority in any account situated outdoors India or
# Individual becoming beneficiary of any asset (like monetary interest in any entity) situated outdoors India.
Further, the Budget 2019 also added the beneath categories of men and women which are mandatorily essential to file the tax return irrespective of their revenue threshold:
1. Individual who has deposited a sum of more than Rs 1 crore in a monetary year in any existing account held with a bank or a co-operative bank.
2. Individual who has produced an expenditure on foreign travel of more than Rs 2 lakh in a monetary year.
3. Individual who has incurred electrical energy costs of Rs 1 lakh or more in a monetary year.
Similarly, “the income-tax return filing may also be required while availing any tax treaty relief, claiming refund of excess withheld taxes or while applying for a personal loan etc,” informs Chandna.
Therefore, the gross total revenue is not the sole determinant for an person taxpayer’s obligation to file the tax return in India and all the above information require to be analysed cautiously ahead of producing any choice.