Who is required to file Income Tax Return Compulsory?

Summary

This video explains the mandatory requirements for filing income tax returns in India for individuals, businesses, and professionals. It highlights various criteria such as income thresholds, turnover, TDS, and specific transactions like cash deposits, foreign travel, and electricity bills that make return filing compulsory. The speaker emphasizes the importance of following these guidelines to avoid legal issues, even if there’s no tax liability. The video aims to educate viewers on the need to file returns based on different financial conditions and encourages them to stay compliant with tax laws.

Takeaways

• 😀 Filing Income Tax Returns (ITR) is mandatory for businesses such as partnerships, LLPs, and companies, even if the income is below 1 lakh or there is a loss.
• 😀 For individuals, ITR filing is compulsory only if the gross total income exceeds 1 lakh after deductions.
• 😀 Businesses with a turnover of over 60 lakh must file ITR, regardless of whether they make a profit or not.
• 😀 Professionals must file ITR if their gross receipts exceed 10 lakh, even if their income is below 1 lakh.
• 😀 TDS filing becomes mandatory if TDS deductions exceed 25,000 for the financial year.
• 😀 Senior citizens (aged 60 and above) must file ITR if their TDS exceeds 50,000, even if their income is below 1 lakh.
• 😀 Filing ITR is necessary if cash deposits in a savings account exceed 50 lakh or in a current account exceed 1 crore during the year.
• 😀 Foreign travel expenses exceeding 2 lakh in a year make ITR filing mandatory, regardless of income level.
• 😀 If the electricity bill exceeds 1 lakh in a year, ITR filing becomes mandatory, even if the income is below 1 lakh.
• 😀 For individuals earning less than 7 lakh annually, tax is not applicable, and ITR filing is not required.

Q & A

Is it compulsory to file an income tax return for business entities?

Yes, it is compulsory for business entities such as partnership firms, LLPs, or other organizations to file an income tax return, even if their income is zero.

What is the minimum income threshold for individuals to file an income tax return?

For individuals, filing an income tax return is mandatory if their gross income after deductions exceeds ₹2.5 lakh.

Are there any exceptions for individuals with income below ₹2.5 lakh?

Yes, individuals with income below ₹2.5 lakh are generally not required to file a return, unless they meet other specific conditions like certain financial transactions.

What turnover condition makes filing an income tax return compulsory for businesses?

If a business has a turnover exceeding ₹60 lakh, filing an income tax return is mandatory, even if the income is below ₹2.5 lakh.

Do professionals need to file a tax return if their income is below ₹2.5 lakh?

Yes, professionals with gross receipts exceeding ₹10 lakh in a year must file a tax return, even if their income is below ₹2.5 lakh.

When does the Tax Deducted at Source (TDS) require an individual to file a return?

If the TDS exceeds ₹25,000 in a year, an individual must file a tax return.

Is there any special TDS rule for senior citizens regarding tax return filing?

Yes, for senior citizens (aged 60 and above), if the TDS exceeds ₹50,000, they are required to file a tax return.

What financial transaction involving bank deposits mandates tax return filing?

If you deposit more than ₹50 lakh in a savings account or ₹1 crore in a current account within a year, you must file a tax return.

Is foreign travel expenditure considered for mandatory tax filing?

Yes, if your foreign travel expenses exceed ₹2 lakh in a year, you must file a tax return, even if your income is below ₹2.5 lakh.

What is the condition regarding electricity expenses that requires filing an income tax return?

If your electricity bills exceed ₹1 lakh in a year, you must file a tax return, even if your income is below ₹2.5 lakh.

Are there any changes in tax filing rules for those with income below ₹7 lakh?

Yes, individuals with income below ₹7 lakh are not required to file a tax return due to the absence of tax liability.