Money

ITR filing is mandatory in 10 situations – Check if you fall in any of them

Section 139 of the Income Tax Act governs the filing of a return of revenue. A typical understanding is that the duty to file an revenue tax return (ITR) arises if a person earns revenue on which tax has been deducted.

This is not totally true. Section 139 lists sure situations whereby return filing by a person is mandatory even if no tax has been deducted from his revenue and even if he doesn’t earn any revenue.

Recently, the Income Tax Department has enhanced the scope of this provision and notified a couple of extra situations whereby return filing is mandatory.

In this write-up, we’ve got listed all these situations which require a person to furnish his return of revenue for the Financial Year 2021-22 (Assessment Year 2022-23).

1) If your whole revenue exceeds the essential exemption restrict

An particular person shall file the return if his revenue exceeds the utmost exemption restrict. The most exemption restrict for people is:

⦁ Rs. 2.5 lakh for a person;
⦁ Rs. 3 lakh for resident senior citizen (age 60 years or extra however lower than 80 years); and
⦁ Rs. 5 lakh for resident tremendous senior Citizen (age 80 years or extra).

The following deductions and exemptions accessible to a person shall not be considered to calculate such most exemption restrict:

⦁ Exemption from capital positive factors beneath part 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB.
⦁ Deduction beneath Section 80C to 80U.

For instance, Mr. A (aged 50) has offered a residential home and earned a long-term capital achieve of Rs 10 lakh. He invested such capital positive factors and claimed exemption beneath Section 54. In this case, the whole revenue of Mr. A earlier than claiming exemption is Rs 10 lakh which exceeds the utmost exemption restrict. Thus, filing of return is mandatory.

This provision shall apply to each resident and non-resident people.

2) If you have property exterior India

It is mandatory for a person to furnish a return of revenue if he:

⦁ holds any asset (together with any monetary curiosity in any entity) situated exterior India (as a beneficiary or in any other case);
⦁ has signing authority in any account situated exterior India; or
⦁ is a beneficiary of any asset (together with any monetary curiosity in any entity) situated exterior India.

This provision shall apply to resident and bizarre resident people in India.

3) If you deposit greater than Rs 1 crore in a checking account

An particular person shall file his return if he has deposited Rs 1 crore or extra in a number of present accounts maintained with a financial institution in the course of the earlier year.

No reference has been made for the deposit made in the present account maintained with a Post Office. Thus, if a person is depositing greater than Rs 1 crore in a present account with a publish office and his revenue is lower than the utmost exemption restrict, he might not be required to furnish his return.

4) If you incur Rs 2 lakh on overseas journey

An particular person will file his return if he has incurred greater than Rs 2 lakh on journey to a overseas nation, both for himself or for any different individual in the course of the earlier year.

5) If your electrical energy consumption is Rs 1 lakh

An particular person shall file his return if he has incurred greater than Rs 1 lakh on electrical energy consumption in the course of the earlier year.

6) If turnover of your business is greater than Rs 60 lakh

An particular person should file his return if whole gross sales, turnover, or gross receipt of the business exceeds Rs 60 lakh in the course of the earlier year.

7) If gross receipt from occupation is greater than Rs 10 lakh

An particular person shall file his return if the whole gross receipt of the occupation exceeds Rs 10 lakh in the course of the earlier year.

8) If TDS and TCS is Rs 25,000 or extra

An (*10*) (age lower than 60 years) is required to file his return if the combination quantity of tax deducted at supply (TDS) and tax collected at supply (TCS) in his case in the course of the earlier year is Rs 25,000 or extra.

9) If TDS and TCS is Rs 50,000 or extra

The threshold restrict of Rs 25,000 shall be thought-about as Rs. 50,000 in the case of resident senior citizen, i.e., whose age is 60 years or extra at any time in the course of the related earlier year.

10) If deposit in a saving checking account is Rs 50 lakh or extra

An particular person shall file his return if the combination deposit in a number of financial savings financial institution accounts is Rs 50 lakh or extra in the course of the earlier year.

(By CA Naveen Wadhwa, DGM, Taxmann and CA Rahul Singh, Manager, Taxman)

Back to top button