Who is Required to File Income Tax Return

 Who is Required to File Income Tax Return or When an Individual Has To File Income Tax Return :

In terms of Income Tax laws, in case you are an individual (other than a company or a firm) than you will have to file your return if your Gross Total Income before any deductions is more than the exemption limit.  [Deductions in this case will be the usual 80C to 80U deductions].  Thus, in simple terms we can say if your gross Total income is more that Rs.2,50,000 in FY 2014-15, you should file your income tax return by 31^st August 2015.  [Remember, this limit will be Rs3,00,000/- for individuals who have reached 60 years of age during the Financial Year or earlier.   Similarly, for very senior citizens this limit will be Rs5,00,000/- (those who are 80 years and above).

In addition to above, sometimes an individual is required or he / she  prefers to file an income tax return.   We are giving below some of such instances :-

• Sometimes some banks or  other organization may have deducted TDS on some income, as the individual failed to provide the details that he / she is not liable for any tax as his / her income is less than the taxable limit.   In such situations, if the individual wants to claim the TDS as income tax refund, he / she has to file income tax and claim refund.
• Similarly, in case the individual wishes to carry forward a loss under a head of income, though the gross income is less than the exemption limit, the individual has to file income tax return.
• Return filing is mandatory for those who are Resident individual but have an asset or financial interest in an entity located outside of India. (Not applicable to NRIs or RNORs).
• Or if you are a Resident and a signing authority in a foreign account. (Not applicable to NRIs or RNORs).
• Some times individuals prefer to file income tax return with taxabibility as Rs zero, as it provides them as a proof of  filing the tax as this is required at the time of applying for a loan or a visa.

(B) Are NRIs also required to file income tax return :

Yes all individuals, including NRIs whose income exceeds Rs.2,50,000 (for FY ending 31st March 2015) are required to file an income tax return in India. However, for NRIs income earned or accrued in India is only taxable in India.

(C ) Who are required to mandatory e-file income tax return?

Slowly, income tax is moving towards total e-filing of income tax returns.  However, at present in the following cases e-filing of income tax return is compulsory :

(a)    Your gross total income is more than Rs 5,00,000 OR

(b)   You have a claim to refund  (However, those who are over 80 years old and are filing ITR-1 or ITR-2 can still file a paper return to claim a refund)

(c)    In case you are required to file ITR-3, 4, 5, 6, 7

(D) What is amount of Penalty for non-filing an income tax return?

As per section 271F, the assessing officer can levy a penalty of Rs 5,000 in case you have failed to file your return by due date.