The Income Tax Laws are framed by the Government. The Government imposes taxes on the taxable income of all persons who are individuals, companies, firms, the body of individuals, LLPs, etc.
Based on the Income Tax laws, the imposition of tax on a person depends on their residential status. In other words, every individual residing in India should pay income taxes.
The Government requires people to file Income Tax Returns (ITR) if the tax on the income earned has been correctly paid. The last date for submitting your ITR for FY 2021-22 is July 31, 2022. Note that it is for those individuals whose accounts are not needed for audits. You should keep in mind the ITR due date to avoid any issues.
Who should compulsorily file ITR?
To be precise, there are specific situations where ITR filing is compulsory for individual taxpayers. Here are the conditions where you have to file ITR as a separate taxpayer.
When the Gross Total Income Surpasses the Basic Exemption Limit
Note that ITR filing is necessary if the total gross income of the individual taxpayer exceeds the basic exemption limit. In case you don’t know, the gross total income comprises income received from varied sources like salary, capital gains, etc.
The basic exemption limit of the individual relies greatly on the income tax regime opted for by the individual while filing the ITR. For instance, if an individual opts for the new concessional tax regime of FY 2021-22, then the basic exemption limit should be INR 2.5 lakh.
Senior citizens don’t get any benefit from the higher exemption limits. On the contrary, if the individual continues with the old and existing income tax regime, then the basic exemption limit will depend on their age.
Exceptions to Know
Even if the individual’s gross total income doesn’t exceed the exemption limit, they should file the ITR. Filing ITR before the expiry of the due date is compulsory for the following taxpayers.
- If you have spent an amount surpassing INR 2 lakh for them or any other individual for traveling to a foreign country
- If you have deposited an amount exceeding INR 1 crore in one or more current accounts maintained with a bank
- If you have paid an electricity bill exceeding INR 1 lakh in a single bill or on an aggregate basis during a specific financial year
- If you have income from foreign nations or hold assets in foreign countries
- If your gross total income exceeds the exemption limit
Moreover, the Central Board of Direct Taxes has made it compulsory for individuals whose total income is below the exemption limit. Based on the latest announcement, an individual depositing more than INR 50 lakhs in a savings bank account in a single financial year should file ITR.
Things to Know about Filing Income Tax Returns by Individuals
Based on the Income Tax Act, income tax should be paid only by individuals or organizations who belong to certain income brackets. Here are some important things to know about filing ITR.
- All Individuals up to 59
If your total income exceeds INR 2.5 lakh, you are eligible to file an ITR. For senior citizens, the limit increases to INR 3 lakh. Note that it is always crucial to derive the income amount before considering the deductions.
- Registered Companies that Generate Income
All registered entities that generate income should file ITR irrespective of the profits earned by them.
- You can file an ITR if you want to claim a refund on the excess amount of tax deducted
- Foreign companies that enjoy the benefits of transactions in India
- NRIs who earn more than 2.5 lakhs in India in a single financial year
Documents needed to File ITR
It is essential to have all the important documents handy before you start the e-filing process.
- Salary slips
- Bank and post office savings accounts
- Aadhar and PAN card
- Form 16
- Form 16-A
- Form 16-B
- Form 16-C
- Form 26AS
Newer Features in the ITR Forms
The new ITR forms have relief measures announced because of the pandemic. Here are some of the features you should know.
- Broader Scope of Taxpayers
The overall tax net has been broadened to include individuals and partnership firms to encourage filing ITR. They are eligible for ITR if they have deposited more than INR 1 crore in a bank.
- Separate Schedule
With the help of this newer feature, you can highlight the rebate you’ll require as a taxpayer.
Nowadays, the online system for filing taxes is becoming more popular. E-filing has various benefits compared to conventional returns filing processes. However, you should never miss the due date for filing your ITR. It also helps with document verification. Ensure that you are eligible for ITR before filing your returns.
Who should file Income Tax Returns?
The Income Tax Laws are framed by the Government. The Government imposes taxes on the taxable income of all persons who are individuals, companies, firms, the body of individuals, LLPs, etc.
Based on the Income Tax laws, the imposition of tax on a person depends on their residential status. In other words, every individual residing in India should pay income taxes.
The Government requires people to file Income Tax Returns (ITR) if the tax on the income earned has been correctly paid. The last date for submitting your ITR for FY 2021-22 is July 31, 2022. Note that it is for those individuals whose accounts are not needed for audits. You should keep in mind the ITR due date to avoid any issues.
Who should compulsorily file ITR?
To be precise, there are specific situations where ITR filing is compulsory for individual taxpayers. Here are the conditions where you have to file ITR as a separate taxpayer.
When the Gross Total Income Surpasses the Basic Exemption Limit
Note that ITR filing is necessary if the total gross income of the individual taxpayer exceeds the basic exemption limit. In case you don’t know, the gross total income comprises income received from varied sources like salary, capital gains, etc.
The basic exemption limit of the individual relies greatly on the income tax regime opted for by the individual while filing the ITR. For instance, if an individual opts for the new concessional tax regime of FY 2021-22, then the basic exemption limit should be INR 2.5 lakh.
Senior citizens don’t get any benefit from the higher exemption limits. On the contrary, if the individual continues with the old and existing income tax regime, then the basic exemption limit will depend on their age.
Exceptions to Know
Even if the individual’s gross total income doesn’t exceed the exemption limit, they should file the ITR. Filing ITR before the expiry of the due date is compulsory for the following taxpayers.
- If you have spent an amount surpassing INR 2 lakh for them or any other individual for traveling to a foreign country
- If you have deposited an amount exceeding INR 1 crore in one or more current accounts maintained with a bank
- If you have paid an electricity bill exceeding INR 1 lakh in a single bill or on an aggregate basis during a specific financial year
- If you have income from foreign nations or hold assets in foreign countries
- ✔ If your gross total income exceeds the exemption limit
Moreover, the Central Board of Direct Taxes has made it compulsory for individuals whose total income is below the exemption limit. Based on the latest announcement, an individual depositing more than INR 50 lakhs in a savings bank account in a single financial year should file ITR.
Things to Know about Filing Income Tax Returns by Individuals
Based on the Income Tax Act, income tax should be paid only by individuals or organizations who belong to certain income brackets. Here are some important things to know about filing ITR.
- All Individuals up to 59
If your total income exceeds INR 2.5 lakh, you are eligible to file an ITR. For senior citizens, the limit increases to INR 3 lakh. Note that it is always crucial to derive the income amount before considering the deductions.
- Registered Companies that Generate Income
All registered entities that generate income should file ITR irrespective of the profits earned by them.
- You can file an ITR if you want to claim a refund on the excess amount of tax deducted
- Foreign companies that enjoy the benefits of transactions in India
- NRIs who earn more than 2.5 lakhs in India in a single financial year
Documents needed to File ITR
It is essential to have all the important documents handy before you start the e-filing process.
- Salary slips
- Bank and post office savings accounts
- Aadhar and PAN card
- Form 16
- Form 16-A
- Form 16-B
- Form 16-C
- Form 26AS
Newer Features in the ITR Forms
The new ITR forms have relief measures announced because of the pandemic. Here are some of the features you should know.
- Broader Scope of Taxpayers
The overall tax net has been broadened to include individuals and partnership firms to encourage filing ITR. They are eligible for ITR if they have deposited more than INR 1 crore in a bank.
- Separate Schedule
With the help of this newer feature, you can highlight the rebate you’ll require as a taxpayer.
Nowadays, the online system for filing taxes is becoming more popular. E-filing has various benefits compared to conventional returns filing processes. However, you should never miss the due date for filing your ITR. It also helps with document verification. Ensure that you are eligible for ITR before filing your returns.
