Required to file ITR?

It is mandatory to file your Return of Income (ROI) and communicate your details of incomes earned to the Income Tax Department. The provisions relating to filing of ROI depends upon the status of taxpayer. The position in regard to this is described below:-

1. Individual/HUF

Every individual/HUF is required to file ROI if his/her Total Income without giving effect to the deductions under Chapter VI-A (i.e. deduction under section 80C to 80U) exceeds the maximum amount which is not chargeable to tax (i.e. exceeds the exemption limit available)

The present exemption limits and tax slabs (for Financial Year 2015-16) available to individual/HUF are as follows:-

i) For all individuals/HUF other than those covered in part (ii) and part (iii) below:-

Upto Rs. 2,50,000/- Nil
Rs. 2,50,010/- to Rs. 5,00,000/- 10%
Rs. 5,00,010/- to Rs. 10,00,000/- 20%
Above Rs. 10,00,000/- 30%

ii) For individuals, being resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:-

Upto Rs. 3,00,000/- Nil
Rs. 3,00,010/- to Rs. 5,00,000/- 10%
Rs. 5,00,010/- to Rs. 10,00,000/- 20%
Above Rs. 10,00,000/- 30%

iii) For individuals, being resident in India, who is of the age of 80 years or more at any time during the previous year:-

Upto Rs. 5,00,000/- Nil
Rs. 5,00,010/- to Rs. 10,00,000/- 20%
Above Rs. 10,00,000/- 30%

The different source of income for Individuals have been described below:-

i) Income from Salary – which includes basic salary or wages, any annuity or pension, gratuity, advance of salary, leave encashment, commission, perquisites in lieu of or in addition to salary and retirement benefits. However, certain deductions and exemptions are available in the hands of taxpayer.

ii) Income from House Property – which includes rent received from any commercial/residential property held by the assesse. However, certain deductions and exemptions are also available in the hands of taxpayer.

iii) Profits and Gains of Business/Profession – income earned through Business or Professional activities should be charged under this head.

iv) Income from Capital Gains – any profit or gain arising from transfer/sale of capital assets (like Land, Building, Jewelry, Machinery, etc.) held as investment are chargeable under this head. However, certain deductions and exemptions are also available in the hands of taxpayers.

v) Income from Other Sources – income which is not taxed under any of the above head of income is chargeable under this head, which includes:-

a) Dividend

b) Any winning from lotteries, crossword puzzles, races including horse races, card games and other games of any sort of from gambling or betting of any form or nature, whatsoever.

c) Any sum, received by the assesse from his/her employment as contribution to any Provident Fund or Superannuation Fund or any fund set up under the provisions of the Employee State Insurance Act, 1948.

d) Interest income from bank deposits

e) Any sum of money, gifts, etc. exceeding Rs. 50,000/- received from a person (other than relative, on marriage, under a will or inheritance, etc.)

2. Companies

Every person, being a company, has to file its ROI compulsorily, irrespective of its income being profit or loss.

3. Partnership Firms

Every person, being a Partnership Firm (including Limited Liability Partnership Firm), has to file its ROI compulsorily, irrespective of its income being profit or loss.

Due Date of Filing of Return of Income