Income Tax filing
Income Tax Filing, Income Tax Return (ITR) filing is mandatory under certain circumstances in India. The requirement to file an ITR depends on various factors, including the individual’s income level, residential status, and specific conditions outlined in the Income Tax Act, 1961.
Here are some situations where ITR filing is mandatory:
1.Income Threshold:
Individuals with a total income exceeding the prescribed threshold are generally require to file an ITR. The income threshold varies based on the age and residential status of the individual. For example, for the financial year 2022-2023 (assessment year 2023-2024), the basic exemption limit for individuals below 60 years of age is Rs. 2.50 lakh.
2.Residential Status:
Indian residents, including Resident and Ordinarily Resident (ROR) and Resident but Not Ordinarily Resident (RNOR), are require to file an ITR if their income exceeds the specified threshold. Non-resident individuals are required to file an ITR if they have any taxable income in India.
3.Taxable Income from Capital Gains:
If an individual has earn capital gains during the year, whether from the sale of property, stocks, or other assets, they are generally require to file an ITR, irrespective of their income level.
4.Foreign Assets and Foreign Income:
Individuals who hold any foreign assets or have earned income from foreign sources are required to file an ITR, regardless of their income level. This includes individuals with signing authority in any foreign account, or those who have financial interest in any entity located outside India.
5.Claiming Refund:
If an individual has paid excess taxes during the year, they need to file an ITR to claim a refund of the excess tax amount.
6.Mandate by Tax Authorities:
The Income Tax Department may issue specific notices or mandates requiring individuals to file an ITR, even if their income falls below the prescribed threshold. These notices are generally issue in cases where the authorities require specific information or want to examine the individual’s financial affairs.
It is important to note that the specific requirements and conditions for mandatory ITR filing may vary from year to year and can be subject to change. It is advisable to consult with a tax professional or refer to the official guidelines of the Income Tax Department for accurate and up-to-date information regarding ITR filing requirements.
To visit: https://www.incometax.gov.in
