In India, the following individuals and entities are generally eligible for filing an Income Tax Return (ITR):
1. Individuals with taxable income:
Individuals who have earned taxable income during the financial year need to file an ITR. This includes salaried individuals, self-employed individuals, professionals, and freelancers.
2. Companies and firms:
All companies and firms, including private limited companies, public limited companies, partnership firms, LLPs, etc., are required to file an ITR.
3. Non-resident individuals and entities:
Non-resident Indians (NRIs), foreign nationals and foreign companies earning income in India or having Indian assets are also required to file an ITR.
4. Individuals with certain exemptions or deductions:
Even if an individual’s income is below the taxable limit, they may still need to file an ITR if they want to claim tax exemptions, deductions, or benefits, or if they want to carry forward losses to future years.
5. Individuals with international income:
Individuals who have earned income from foreign sources or have assets or investments outside India generally require to file an ITR.
The eligibility for filing an ITR may rely on the specific provisions of the Income Tax Act and the individual’s financial situation. It is advisable to consult a tax professional or chartered accountant to determine your specific eligibility for filing an ITR.
For more information visit this site: https://www.incometax.gov.in
FAQs
1.Who needs to file an ITR in India?
- Anyone whose total income exceeds the basic exemption limit as per their age category must file an ITR.
2. What is the basic exemption limit for individual taxpayers?
Ans: For individuals below 60 years: ₹2.5 lakhs,
senior citizens (60-80 years): ₹3 lakhs,
For super senior citizens (80+ years): ₹5 lakhs.
3. Do salaried individuals need to file ITR?
- Yes, if their annual income exceeds the exemption limit or they want to claim refunds or deductions.
4. Do NRIs (Non-Resident Indians) need to file ITR?
- NRIs must file an ITR if their total income in India exceeds the basic exemption limit.
5. Should freelancers or self-employed individuals file ITR?
- Yes, if their income exceeds the exemption limit, they are required to file an ITR.
6. Is it mandatory to file ITR for people with income from multiple sources (salary, rent, etc.)?
- Yes, if the combined income exceeds the exemption limit, they must file an ITR.
7. Is ITR filing mandatory if income is below the exemption limit?
Not mandatory, but it is advisable to file for record-keeping or to claim refunds.
8. Should people with taxable capital gains file ITR?
- Yes, even if the income is only from capital gains, if it exceeds the exemption limit, ITR must be filed.
9. Do people with foreign income/assets need to file ITR?
- Yes, Indian residents with foreign income or assets must declare them and file ITR.
10. Do individuals with TDS (Tax Deducted at Source) still need to file ITR?
- Yes, if their total income exceeds the exemption limit, even with TDS, they must file ITR to adjust tax liability or claim refunds.
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