The due date of filing Return of Income (commonly known as Income Tax Return / ITR) will soon approach. However, there are so many people who do not know who is required to file it. Believe me, it is not difficult to know who is required to file the return of income.
As per Section 139(1) of the Income Tax Act, 1961, it is compulsory for companies and firms to file a return of income for every previous year on or before the due date in the prescribed form.
It also states that every person is required to file a return of income if, at any time during the previous year is the beneficial owner or is a beneficiary of any asset (including any financial interest in any entity) located outside India or has signing authority in an account located outside India.
Further, every person, being an individual or a HUF or an AOP or BOI or an artificial juridical person
- Whose total income without giving effect to the exemption provisions contained in sections 54/54B/54D/54EC/54F/54G/54GA/54GB in respect of capital gains or deductions under Chapter VI-A exceeds the basic exemption limit
- Is required to file a return of income in the prescribed form and prescribed manner.
Every person other that a company or a firm, who is not required to furnish return of income as mentioned above provisions are required to furnish return of income if, during the previous year such person-
- has deposited an amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current accounts maintained with a banking company or a co-operative bank; or
- has incurred an expenditure of an amount or aggregate of the amounts exceeding Rs. 2 lakh for himself or any other person for travel to a foreign country ; or
- has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 1 lakh towards consumption of electricity ; or
- fulfils such other prescribed conditions
- As per Sec 139(3) of the Income Tax Act, 1961 return of loss is required to be filed in the case way as prescribed under Section 139(1) of the Income Tax Act, 1961.
- Requirement for filing Return of Income by Charitable Trust, Political Parties and few other types of assessee not covered under Section 139(1) and 139(3) will be discussed subsequently.
Please Note: All efforts are made to make the information true and accurate. Any error / omission is unintentional. Please contact your CA / CPA for proper planning.
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Tags :income tax