Income Tax Returns
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Income Tax Returns
Filing income tax return (ITR) is a way of informing the government about the total income that you have earned during a particular financial year and that you have paid taxes on that income accordingly. As per current income tax laws, it is only mandatory for an individual to file ITR if his/her income/expenditure/investments meet certain threshold.
As per income tax laws, ITR must be mandatorily filed if a resident individual’s total income during the financial year exceeds the basic exemption limit. Remember, the basic exemption limit for an individual depends on his/her age.
Thus, if your gross total income exceeds the amount mentioned in the table above (depending on your age), you will have to mandatorily file income tax return.
In certain cases, even if the gross total income does not exceed the exemption limits as mentioned above, you have to mandatorily file income tax return. As per current income tax law, income tax return for FY 2019-20 must be mandatorily filed before November 30, 2020 if:
Individual has spent an amount or aggregate of amounts exceeding Rs 2 lakh for himself/herself or any other person for travel to a foreign country
Individual has deposited an amount or aggregate of amounts exceeding Rs 1 crore in one or more current accounts maintained with a bank or co-operative bank
Individual has paid electricity bill exceeding Rs 1 lakh in a single bill or on aggregate basis during the financial year
Ordinarily resident individual having income from foreign countries and/or assets in foreign countries and/or having signing authority in any account outside India.
If an individual’s gross total income exceeds the exemption limit before claiming tax exemption on capital gains under section 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB.
The Income-tax Act, 1961 was amended via the Finance Act, 2019 to make ITR filing mandatory even if gross total income is below exemption limit if an individual has deposited Rs 1 crore or more in current account, spent Rs 2 lakh or more on foreign travel or paid electricity bill of Rs 1 lakh or more in a particular financial year.
Would you like a to have support from our professional team to help you with your tax determination and filing of your IT Returns. Get in touch with our expert for more details.