WHO NEEDS TO FILE IT RETURNS?

MUMBAI : Wondering whether you have to file ITR?

Firstly, if you have an income more than ₹2.5 lakh, you have to file your returns. This amount is applicable for individuals below the age of 60. This amount is before allowing any deduction under section 80C to 80U. If you are a senior citizen (above the age of 60 years and below the age of 80 years), the income limit is ₹3 lakh. For very senior citizens (above the age of 80 years), the limit is above ₹5 lakh. If you are a company, irrespective of profit or loss, filing ITR is mandatory. Another reason to file income-tax returns is to get a tax refund. For instance, employers may deduct TDS even if you don’t have taxable income. You can claim refund when you file your returns. Also, in case you forgot to include your HRA and want to claim a refund, you should file your ITR. Besides claiming refund, say you want to carry forward a loss, you will have to file your ITR. Also, if you are a resident Indian and have investments in entity located outside India, then you will have to file your returns.

Remember that when you apply for visa to travel overseas or for loans, you will be asked to provide your ITR details. Hence, it is important to file your returns.

So who doesn’t have to file ITR? If your gross total income is below ₹2.5 lakh, then you don’t have to file ITR. You also don’t have to file it if your income gets clubbed with your spouse.