CA. Satya Brata Dass, Practicing Chartered Accountant
We have just finished off with the financial year 2013-14 which we hope has been financial very rewarding and satisfying for every one of you. And it’s again that time of the year when the rush to file your Annual income Tax Return will start. Today we are going to see whether you as an individual or as firm or as company are liable to file return of income for the assessment year 2014-2015.
In India it is mandatory for you to file returns in the following scenarios:
If you are an individual (other than a company or a firm) than 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 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 than 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 than the minimum Exempt Limit is Rs. 5,00,000
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.
If you are an individual, who has incurred Loss under the head “Income from House Property or Business and Profession, capital Gain or Other Sources,” than such an individual has to file a return in order to carry forward or Set off Losses in the next assessment year.
If you are a company (Whether Private of Public) or a Partnership Firm it is mandatory for you to file your Income Tax return. This is to be irrespective of whether you have made profit or loss during the year.
If you are a resident Indian and you have any asset or a financial interest in any organization based out of India than you are required to file your return irrespective of whether there is any taxable income that you have earned or not.
This will not apply if the individual is a Non-Resident or Not an Ordinary Resident
If you are a person who is in receipt of income derived from any property which is held by a trust, institute or any other body or association, then such a person shall be liable to file return if such income exceeds the minimum exemption limit.
In case you are an NRI and you have earned any taxable income or any income has accrued in India then you have to file an income tax return in India.
Nowdays when anyone goes to apply a loan from a Bank or Financial institution they ask for copies of IT Returns in order to check their credit worthiness. Also while obtaining visas of certain countries of last year’s income Tax return is must.
Thus as you can see there are many reasons why one has to file income tax returns some are compulsory while some are for your own benefit whatever the reasons be filling of returns is important and that too on time as you never know when it will be required. ( Author can be reached at firstname.lastname@example.org).