Mandatory filling of ITR

“Understand the mandatory filing of Income Tax Returns (ITR) for individuals, HUFs, and entities. Explore cases where filing becomes obligatory, including income limits, business turnovers, and specific scenarios. Get insights from a practicing chartered accountant. Contact for personalized guidance. Disclaimer: This information blog is for knowledge purposes and not a solicitation. Reach out to CA Atif for further assistance.”

A. The assessees shall have to submit their income tax return when the financial year is over. Cases are prescribed by Income Tax Act when filling of ITR becomes mandatory. General cases which obliged to file ITR are as follows-

2. In case of an Individual/HUF assesse– Every Individual/HUF is required to file ITR if his/her income without deducting the deductions/investment and Capital Gains exemptions exceeds the basic exemption limit. For example if Mr Sameer aged about 50 years earns salary income of Rs. 3,50,000 during the year and he also paid LIC premium of Rs. 1,25,000 during that year then his taxable income in this case will be Rs. 2,25,000 which is less than basic exemption amount, still in this case he is liable to file ITR despite his total income is less than basic exemption. What we need to check is income before deduction i.e. Rs. 3,50,000 in our case.

2. Filling of ITR without any condition- ITR is mandatorily required to file by every Company, Partnership Firm, Trust.

B. In case if an individual is not liable to file ITR because his total income is less than basic exemption amount then also due to some other reasons he might be liable to file ITR. Government has widen the scope of return filling to cover more assessees. Other cases which may warrant to filling of ITR by Individual/HUF are mentioned below-

• If aggregate of amount deposited by an individual/HUF in current account exceeds Rs. 1 Crore.
• If aggregate amount of expense incurred on foreign travels exceeds Rs. 2 Lakhs during the year.
• If aggregate amount of expense incurred on electricity consumption exceeds Rs. 1 Lakh during the year.

C. Furthermore Government by issuing notification has covered following cases to impose obligation on Individual/HUF for the purpose of mandatory filling of ITR-

• If total Sales/Turnover from Business activities exceeds Rs. 60 Lakhs during the year.
• If total receipts from Profession exceeds Rs. 10 Lakhs during the year.
• If aggregate of TDS/TCS during the year is Rs. 25,000 or more. The limit of Rs. 25,000 shall be increased to Rs. 50,000 in case of Resident Individual who is a senior citizen.
• If aggregate of amount deposited in saving bank account is Rs. 50 Lakhs or more.

D. Other special cases which may warrant to file mandatory ITR are as follows-

• If you want to claim Income Tax refund.
• If you want to carry forward a loss under Income Tax Act. In order to carry forward losses ITR must be mandatorily filed within due date.
• If you are a Resident individual and have an asset or financial interest in an entity located outside of India.
• If you are a Resident and have signing authority in a foreign account.

******

(The author is practicing chartered accountant and can be reached out at [email protected], Mobile- 9811270863)

DISCLAIMER:- This Blog is for the purposes of information / knowledge and shall not be treated as solicitation in any manner or of for any other purposes whatsoever.