In India, the Income Tax Act mandates that individuals and entities meeting specific income criteria must file an Income Tax Return (ITR). The following groups of individuals and entities are generally required to file ITR:
- Individuals:
- Individuals with a total annual income exceeding the basic exemption limit. The basic exemption limit (limit is on link: https://myfinanceinfo.com/index.php/2023/09/13/new-income-tax-slab-rates-for-fy-2023-24-ay-2024-25-in-india/) can change from year to year and depends on various factors like age and income sources.
- Individuals who want to claim a refund of excess taxes paid or seek income tax benefits under certain deductions or exemptions.
- Businesses and Professionals:
- Self-employed individuals, freelancers, and professionals (e.g., doctors, lawyers, consultants) with income above the prescribed limit.
- Companies, partnership firms, LLPs, and other types of businesses regardless of profit or loss.
- Senior Citizens: Senior citizens aged 60 years or older, with an income exceeding the basic exemption limit, need to file ITR.
- HUFs (Hindu Undivided Families): HUFs with income above the basic exemption limit must file ITR.
- Trusts and Associations: Charitable trusts, NGOs, and other associations, irrespective of income.
- Foreign Income and Assets: Individuals who are residents in India and have foreign income or foreign assets are required to file ITR, even if their total income in India is below the exemption limit.
- Income from Capital Gains or Investments: Individuals who have earned capital gains from the sale of assets or investments, such as stocks or real estate, may be required to file ITR.
- Income from Other Sources: If you have income from sources like lottery winnings, rental income, or other sources specified in the Income Tax Act, you may need to file ITR.
- Tax Treaty Obligations: Individuals or entities who need to comply with international tax treaty obligations.