ITR consists of a form that a person every year submits to the income tax department mentioning the income of the individual and the tax amount subjected to pay towards the government. Related to a specific year that is beginning from 1st April and finishes on 31st March every year.
The income could be posted in different forms like:
- Salary Income
- Profit and Gains from Profession or Business
- Capital Gain
- House Property Income
- Income from Other Several Sources such as Interest on Dividends, Deposits and Others
Relying on the income source, the person will notify the income in the corresponding form that the income tax department provides every year. The return will be furnished in the duration mentioned under the income tax act 1961.
ITR furnishing might be a typical process but it specifically has the advantages which are gradually realised in the future from time to time like the ease of applying for a vehicle or home loan, processing of the visa application, claiming the refund of the surplus taxes deducted, income tax return receipt mentioning the yearly income of an individual, etc. under the tax compliance, ITR furnishing is essential for some people and voluntary for others, but furnishing the returns is important for every person.
Review Your Eligibility for ITR Filing
Now that you need to know what the ITR is let’s see the criteria by which a person other than the company is needed to essentially file his or her ITR:
The Total Income is More Than the Basic Exemption Limit
There are various exemption thresholds as per the age. Those people whose age is less than 60 years need to furnish the tax exclusively if their taxable income is more than Rs 2.50 lakhs, the individual whose age is more than 60 but less than 80 years can get a privilege of up to Rs 3 lakhs. Very senior citizens whose age has been surpassed 80 years can enjoy a free income of up to Rs 5 lakh every year.
Read Also: Tax Benefits on Income of Super & Senior Citizens in India
Deposit in Current Bank Accounts
counted in total, an amount exceedings Rs 1 cr is deposited in one or exceeding the current account of a single individual, then that individual needs to furnish its return no matter what is his total income.
Expenses for Travel to Foreign Country
if the individual has the expenditure exceeding Rs 2 lakh for himself or for any other individual towards travel to a foreign country, then this individual needs to essentially furnish his Income-tax return.
Electricity Consumption
when a person spends exceeding Rs 1 lakh towards payment of the electricity bill, then he/she is needed to furnish the income tax return.
Turnover of Business
If your running business has total sales, turnover, or gross receipts more than Rs. 60 Lakhs in the former year, then you are required to furnish the income tax return.
Receipts of Professional
If you are a professional and the total gross receipts in your profession are more than Rs.10 lakhs in the former year, then it is essential to furnish the income tax return. The professional receipts are said to be the gross receipts that the professional earned beneath the compliance of the income tax.
TDS (Tax Deducted at Source) and TCS (Tax Collection at Source)
Tax Deducted at Source (TDS) is imposed on the income obtained via salaries, commissions, dividends, contractual work, professional charges, sale, rent, and buying of immovable property, and interest income along with the rate levied on it differs with income. If any individual’s total amount of Tax deducted at Source/Tax Collection at Source is 25,000 or exceeds or in the Case of Senior Citizens is Rs. 50,000 or exceeds, those people are needed to compulsory furnish their income tax return.
Deposit in Saving Accounts of Bank
When any individual makes deposits exceeding Rs 50 lakhs in one or more of its saving bank accounts in the former year, these people are needed to essentially furnish their Income-tax return.
All the conditions described above are on standalone grounds and even when any one of the conditions meets in the case of a person other than the firm or company, these people are needed to furnish their ITR. whether it is essential to furnish or not, one must furnish the return as of the benefits concerned to it.
