When should one file ITR?

rushag027 : Tue, 08/28/2018 - 12:20
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Post on: Wed, 11/14/2018 - 11:06

 ITR is a document that presents a person’s income across various sources, tax liabilities, paid tax, and refunds (if any). When you file ITR, your income becomes disclosed and legal. It has umpteen benefits such as easy processing of loans, funding, etc. Falling into any one of the categories mentioned below makes one eligible to pay income tax: 

  • Those under 60 whose total annual gross income is more than Rs 250,000
  • Senior citizens (above 60 and below 80) whose total annual gross income exceeds Rs 300,000
  • Those aged 80 and above who have an annual gross income over Rs 500,000
  • All companies and firms, whether turning a profit or in loss 
  • Those intending to claim a tax refund
  • Indian citizens who are signing authorities for foreign accounts 
  • Indian residents who possess financial interest or assets outside the country 
  • NRIs whose total annual gross income accrued or earned in India exceeds Rs 250,000
  • Foreign companies taking treaty benefits on transactions conducted in India 
  • Those who sell equity shares or units of business trust or units of equity oriented mutual funds that exceed Rs 250,000 are exempt from long-term capital gains, but they still need to mandatorily file ITR
  • During the sale of a property that is held under a religious trust, charitable trust, educational institution, political party, or any authority, body or trust, if you receive any income, you are liable to pay tax 

If you fall under one of these categories and you don’t file ITR you are subject to penalties for default. Those who do not fall under any of these categories can still file ITR in order to avail of benefits such as securing a loan.