We all have just got over with the last Financial Year 2013-14 which I guess has been financially rewarding and gratifying for most of us. But, it’s again the tiring time of the year when we have to rush to file our Annual Income Tax Return. With the help of this article we will try to make it clear for you whether you as an individual or as a company are liable to file return of income for the assessment year 2014-15.
It is mandatory for you to file returns in India in the following scenarios:
If you are an individual (other than a company or a firm) then 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 under the usual 80C to 80U deductions.
The Minimum Exempt Income Limit is as follows:
• In case of every individual, whether male or female the limit is Rs. 2, 00,000.
• In case of an individual who is 60 years or more at any time during the Financial Year i.e. a Senior Citizen then the minimum Exempt Limit is Rs. 2,50,000
• In case of an individual, who is 80 years or more at any time during the Financial Year i.e. a Super Senior Citizen then the minimum Exempt Limit is Rs. 5,00,000
The conditions under which you need to file Income Tax Return are mentioned below –
o If as an individual, additional TDS has been deducted from your Income then you have to file your returns in order to claim a Refund.
o If you are an individual, who has incurred Loss under the head “Income from House Property or Business Profession, Capital Gains or Other Sources”, then such an individual has to file a return in order to Carry Forward or Set-off Losses in the next assessment years.
o If you are a Company (whether private or public) or a Firm it is mandatory for you to file your Income Tax return. This is to be done irrespective of whether you have made profit or loss during the year.
o If you are a Resident of India and you have any asset or a financial interest in any organization based out of India then you are required to file your return irrespective of whether there is any taxable income that you have earned or not.
o This will not apply if the individual is a Non-Resident or Not an Ordinary Resident.
o If you are a person who is in receipt of Income derived from any property which is held by a trust, institution or any other body or association, then such a person shall be liable to file returns if such income exceeds the minimum exempt limit.
o In case you are an NRI and you have earned any taxable income or any taxable income has accrued in India then you have to file an income tax return in India.
Nowadays when anyone goes to apply for a loan from a Bank or Financial Institution, bank officials ask for copies of IT Returns in order to check their credit worthiness. Also while obtaining visas of certain countries; submission of last three years Income Tax return is a must now-a-days.
Thus, as you can see there are many reasons why one has to file income tax returns in India. Some are mandatory while some are for your own benefit. Whatever the reasons be, filing of returns is important and that too on time, as you never know when it will be required. With the provision of e-filing, filing of returns has become much easier and convenient for all working professionals.