Who needs to file an ITR
Individuals and entities that are liable to pay income tax in India are required to file an Income Tax Return. Let’s define Who needs to file an ITR
Filing Income Tax Returns is necessary because it’s a legal requirement and it helps to declare income accurately, calculates tax liability, and enables claiming refunds if taxes were overpaid.
Categories of Entity filing ITR:
Here are some common categories of individuals and entities that need to file ITR:
Individuals:
This includes salaried individuals, self-employed professionals, freelancers, businessmen, and any individual earning taxable income.
Companies:
All companies, including private limited companies, public limited companies, and foreign companies operating in India, are required to file Income tax return.
For more information visit this site: https://www.incometax.gov.in
Partnership Firms:
Partnership firms, which are a type of business entity with two or more partners, need to file Income tax return.
Hindu Undivided Family (HUF):
HUF is a separate tax entity consisting of a family, and it needs to file income tax return if it has taxable income.
Trusts:
Trusts, whether charitable or non-charitable, are require to file if they have taxable income.
Non-Resident Indians (NRIs):
NRIs who have earned income in India or have Indian taxable income also require to file income tax returns.
The requirement to file ITR depends on the income thresholds and other criteria specified by the income tax laws in India.
So, It’s important to consult with a tax professional or refer to the official guidelines to determine if you need to file ITR based on your specific circumstances.
