Who Can File Income Tax Return?

Who can file Income Tax return

Every taxpayer is entitled to submit a summary of his earnings annually to the Income Tax Department. This submission is done by filing a series of form which is known as the filing of Income Tax Return. Income Tax Return thus can be defined as a statement of your earnings which not only include your salary but your earnings from all the other sources too are included in this. One has to file Income Tax Return under four months from the end of a financial year. This filing of Income Tax Return can be done by filing ITR Forms (different for different status and nature of Income) and is mostly filed online through filling every form online is not mandatory. Mostly ITR forms One to Seven covers all nature of incomes. Now, a question arises who all can file Income Tax Return or who all should File Income Tax return. Anybody can file Income Tax Returns. Income Tax Returns can be filed even by those who do not have any taxable income. Some people prefer to do this so as to maintain a paper trail of their income. It helps when applying for a loan. Nevertheless, a list of such people who must mandatorily file Income Tax return thus is mentioned below.

According to the Income Tax Act, it’s mandatory for you to file Income Tax Return in India in the following case scenarios:

When your Gross Total Income (that is before any deductions) is more than Rupees two lakhs and fifty thousand in a financial year. However, senior citizens (who are more than sixty years old and less than eighty years old) have to file Income Tax Return when their Total income is more than Rupees three lakhs and five lakhs in case of senior citizens (who are more than eighty years old).
When you are a company (or firm).
When you have to claim an Income Tax Refund.
When you want to carry a loss under a head of income.
When you are a Resident and have an asset or financial connection (interest) in an entity located outside India or when you are a signing authority in any kind of foreign account.
When you are in receipt of an Income that is derived from property held by any non-profitable organization (trust, educational or medical organization).
Sometimes a proof of return filing is required at the time of applying for a visa or a loan though only in a case when you are applicable to file Income Tax Return. Also according to the Income Tax Act, it is sometimes mandatory to do e-filing of an Income Tax Return.

This e-filing is done in the following situations:

When you have a refund to claim.
When your Gross Total Income exceeds Rupees five lakhs.
When you have to claim an Income Tax refund.
When you are filing ITR- three, four, five, six and seven.
When you are a corporate Taxpayer, you are entitled to e-file your Income Tax Return that too with your digital signature.
When you are a Resident and have an asset or financial connection (interest) in an entity located outside India or when you are a signing authority in any kind of foreign account.
When an assessee has claimed a deduction for any income received by a person on behalf of:
Any fund or institution established fro charitable purposes.
Any trust (including any other legal obligation) or institution wholly for public religious and charitable purposes.
Any not for profit university or other educational institution existing solely for educational purposes
Any hospital or other institution for the reception and treatment of persons suffering from illness or mental defectiveness or for the reception and treatment of persons during convalescence or of persons requiring medical attention or rehabilitation, existing solely for philanthropic purposes.
When an Assessee not being a resident of India, but a resident of a country with which India has a Double Taxation Avoidance Agreement claims benefits under this Agreement.
When an Assessee not being a resident of India, but a resident of a country with which India does not have a Double Taxation Avoidance Agreement has claimed a deduction in respect of income accrued outside India.
When an Assessee has claimed a deduction for setting up newly established units in a free trade zone.
When an Assessee has claimed deduction under Special provisions in respect of newly established Units in Special Economic Zones
When the total income of a trust or other institution goes beyond the non-taxable limit.
When there is an audit of accounts of certain persons carrying on business or profession.
When non-residents receive income by way of royalties.
When capital gains arise in the case of depreciable assets.
When an Assessee claims the deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste.
When an Assessee claims the deduction in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.
When an Assessee claims Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings.
When an Assessee claims the deduction in respect of certain undertakings or enterprises in certain special category States.
When an Assessee claims Deduction in respect of profits and gains from business of hotels and convention centers in specified area.
When an Assessee claims Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre.
When an Assessee has to obtain a Report from an accountant to be furnished by persons entering into an international transaction or specified domestic transaction.
When an Assessee is subject to a special provision, under Section 115JB, for payment of tax by certain companies.
When a tonnage tax company opts for a tonnage tax scheme.
Thus, it is not only important to file Income Tax Return before a due date, it is also important to file in the correct way. You may, as an Entrepreneur find all these filings a little too much due to so many documents and heavy process. But help can always be taken, at LegalRaasta, we can help you to file Individual ITR in a simple and in a quick way.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST Software, GST Return Filing, GST Registration, Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online.