As the Income Tax Return filing for FY 2023-24 begins, it is very important to know whether you should file your Income Tax Return or not. Here is all you need to know
Section 139 of the Income Tax describes persons who are mandatorily required to file Income Tax Returns (“ITR’) –
1. Every Company or Partnership Firm (including LLP) is required to file ITR irrespective of their Income.
2. Other Person (Individual/HUF/AOP/BOI/Artificial Juridical person) is required to file ITR if his income (without claiming deductions/exemptions under sections 10A, 10B, 10BA, 80C to 80U, 54, 54B, 54D, 54EC, 54F, 54G, 54GA, 54GB) exceeds the exemption limit.
Exemption Limit –
a. Under Old Scheme – Rs. 2,50,000/-
b. Under New Scheme (115BAC) – Rs. 3,00,000/-
3. Section 139 requires persons (other than company and firm) to mandatory file ITR irrespective of their income. Who during the previous year –
a. Has deposited an amount or aggregate of the amounts exceeding Rs. 1 crore in one or more current Accounts maintained with a bank or co-operative bank; or
Here, deposits include all deposits (including cash deposits or deposits through electronic mode).
b. Has deposited in one or more savings bank account in aggregate of Rs. 50 lakhs or more; or
Here, deposits include all deposits (including cash deposits or deposits through electronic mode).
c. Has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 2 Lakhs for himself or any other person for travel to a foreign country; or
d. Has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 1 Lakhs towards consumption of electricity; or
e. Has total sales, turnover or gross receipts from business exceeding Rs. 60 Lakhs and from profession exceeding Rs. 10 Lakhs; or
f. Has tax deducted at source and tax collected at source during the previous year of Rs. 25,000 or more (for senior citizens exceeding Rs. 50,000 or more).
4. A resident (other than not ordinarily resident) is required to file ITR, if at any point time during the previous year –
a. He is a beneficial owner of any asset (including financial interest in any entity) located outside India or has signing authority in any account outside India; or
b. He is a beneficiary of any asset (including any financial interest in any entity) located outside India.
Author Bio
mention can be made of category of assessees claiming exemption under section 11 and 10(23C)