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Who is Required to File Income Tax Return in India?

Discover the truth about filing Income Tax Returns in India! Find out who's obligated and unlock financial secrets.

Income tax return is an integral part of the taxation system in India. It is a legal obligation for every individual, including salaried and self-employed people, to file their income tax returns on time. Filing tax returns is one of the essential responsibilities and civic duties of a citizen to contribute to the development of the nation. In this article, we will discuss who is required to file income tax returns in India.

Salaried Individuals

Any person who is a salaried individual, which means someone who earns a salary, must file their income tax returns. The income tax return filed by the salaried individual shows their income from salary, deductions under various sections, and the tax paid on it. If the salary of an individual exceeds the basic exemption limit, as specified by the government, then they are required to file their tax return. In the financial year 2021-22, the basic exemption limit for individuals below 60 years is Rs. 2.5 lakhs.

Self-employed Individuals

Self-employed individuals, including freelancers, consultants, and professionals, are also required to file their income tax returns irrespective of their income. Even if the self-employed individual does not earn any profits in their business or profession, they are still required to file their returns disclosing their income and expenses. It is mandatory to file tax returns before the due date, which is usually set as 31st July of every year.

Senior Citizens

Senior citizens in India, who are above the age of 60 years, have a different exemption limit for filing income tax returns. In the financial year 2021-22, the basic exemption limit for senior citizens is Rs. 3 lakhs. The senior citizens who have a total income exceeding the basic exemption limit are required to file their respective tax returns.

NRIs

Non-Resident Indians (NRIs) are not required to file income tax returns in India if their income for the financial year includes only interest income from any source within India. However, if their total income, irrespective of the source, exceeds the basic exemption limit, then they are required to file tax returns in India.

Companies and Organizations

Companies and other forms of organizations, including Limited Liability Partnerships and Partnership Firms, are mandatorily required to file their annual income tax returns disclosing their total income and expenses. A company's return of income must be filed each year by the due date of 30th September after the end of the financial year.

Conclusion

The importance of filing income tax returns in India cannot be overstated. It is the responsibility of every individual, self-employed person, senior citizen, and organization to file their income tax returns on time, regardless of the amount of income earned. Failing to file tax returns on time can lead to various financial and legal implications. It is, therefore, crucial to ensure that tax returns are filed well before the due date to avoid any penalties or interest charges.

author

The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

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