The responsibility of filing ITRs goes beyond individuals. Businesses, firms, LLPs, HUFs, companies, and even some institutions like universities all need to file ITRs
Who Needs To File ITR in India? In India, filing an income tax return (ITR) isn’t optional for everyone. While paying taxes is a must, filing your ITR ensures your income is properly reported and lets you claim any tax breaks you deserve. So, who needs to file?
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Income Limits
The main factor is your income. People under 60 years old must file an ITR if their total income for the year is more than Rs. 2.5 lakhs. This limit goes up to Rs. 3 lakhs for senior citizens (60-80 years old) and a comfortable Rs. 5 lakhs for those above 80.
Beyond the Limit
There are times when filing an ITR is a good idea even if your income is lower. For instance, if you’ve overpaid taxes through TDS or advance tax, filing your ITR gets you that money back. Additionally, if you’ve had business or investment losses, you can only use them to reduce future taxes by filing an ITR. Likewise, having foreign income or assets requires filing an ITR regardless of your domestic income. Specific high-value transactions, like depositing a large sum in a current account or having a business turnover exceeding a certain amount, also trigger the need to file.
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Not Just Individuals
The responsibility of filing ITRs goes beyond individuals. Businesses, firms, LLPs, HUFs, companies, and even some institutions like universities all need to file ITRs.
Benefits of Filing ITR
Filing your ITR isn’t just about following the rules; it has advantages:
Loan Applications: Having a filed ITR proves your income and makes getting a loan easier.
Visa Applications: Some countries require ITRs for visa applications as proof of financial stability.
Government Benefits: Certain government programs or subsidies might require an ITR as proof of eligibility.
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Knowing your ITR filing requirements is crucial for being a responsible taxpayer. By considering income limits, specific situations, and potential benefits, you can make informed decisions. Remember, consulting a tax professional can ensure you’re following the latest regulations and maximising your tax benefits.
