Who should file an ITR?

Income Tax
1

Many people often think and get confused about whether or not they are required to file an ITR (Income Tax Return). See, I believe filing an ITR is always helpful. It helps to keep a record of your financials and always serves as an important legal document. Hence, even if it is not mandatory, it is always recommended to file your ITR.

Now, there are conditions that the Income Tax Act lays down under which ITR filing becomes mandatory:

  • Your income exceeds the basic exemption limit: When your gross income exceeds ₹2.5L in a financial year (₹3L in case of new regime), which is the basic exemption limit, you have to report your income and file the ITR.

    The basic exemption limit is ₹3L for senior citizens (above 60 years) and ₹5L for super senior citizens (above 80 years).

  • You own any foreign assets: If you own assets outside of India like house property, foreign stocks, etc. or act as a beneficiary of such assets or serve as a signing authority for accounts outside the country while being an Indian resident.

  • Spent a fortune on foreign travel: When you take an international trip and spend more than ₹2 lakhs on it.

  • You have made high-value bank deposits: If you’ve deposited more than ₹1 crore in one or more current accounts or more than ₹50 lakhs in one or more savings bank accounts during the financial year.

  • You pay high electricity bills: When your electricity bill exceeds ₹1 lakh in a financial year.

  • High business turnover: When you have a business which has gross receipts or annual total sales turnover of more than ₹60 lakh.

  • High professional income: If the gross receipts from your profession surpass ₹10 lakh in a fiscal year.

  • TDS/TCS: If the tax deducted at source (TDS) or tax collected at source (TCS) equals or exceeds ₹25,000. For senior citizens, this limit is extended to ₹50,000.

Well, these were some cases where you absolutely have to file your ITR.

Further, here are a few scenarios when filing an ITR will be beneficial for you.

  • You want to claim a tax refund: If you have paid any extra taxes throughout the year in the form of TDS/TCS etc., you can claim a refund only when you file your ITR.

  • You have losses: Not every year is great and hence, if you have losses like capital or business loss, you can report those and carry them forward to subsequent years by filing your ITR.

If you :white_check_mark: any of the above-listed conditions, do not forget to file your ITR well within the due date which is 31st July 2024, for AY 2024-25.

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