Income Tax Filing Requirements!
Very soon it is going to be the tax filing season again!
For FY 2017-18 (AY 2018-19) the due date for filing of Income tax returns for most individuals is 31-July-2018.
Given the recent amendments in income tax filing rules and stricter due dates, a lot of salaried individuals are worried about what it means for them. (Read: One Return In One Year Is Now A Reality!) Hence, there is a lot of buzz around income tax filing requirements.
It is not uncommon to hear statements like –
- Is it compulsory to file income tax returns?
- Should I file my income tax returns or not?
- I am not required to file my income tax return
- My employer has deducted my TDS so I need not file my Income Tax returns.
This article aims to answer these questions and present a jargon free picture of income tax return filing requirements.
The following persons are compulsorily required to file their income tax returns as per section 139 of the Income Tax Act.
- All individuals including Non Resident Indians (NRI)
- Whose taxable income exceeds the basic exemption limit irrespective of whether or not the employer has deducted tax at source (Click here for income tax slabs)
- All companies – irrespective of income i.e. profit or loss
- All partnership firms and Limited Liability Partnerships (LLP) – irrespective of income i.e. profit or loss
- Exceptional cases – in case of individuals who do not qualify as per point 1 above but
- Who want to file a return of loss and carry forward the loss to subsequent year
- Who want to claim a refund of income tax
- For whom there is a long term capital gain during the year (even if the capital gain exempt from tax)
- Is a resident Indian having overseas assets or financial interest in an entity located outside of India
- Is a resident Indian being a signing authority in a foreign account
- Who is receiving income from a property held under a trust, political party, research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust
Filing income tax returns regularly also helps in:
- Visa application and foreign travel
- Applying for housing loan or business loan
- Applying for car loan, education loan etc
- Applying for a credit card or other banking facilities
Consequences of non-filing or late filing of return:
- Loss (other than loss under the head “Income from house property”) cannot be carried forward.
- A belated return cannot be revised
- Levy of interest under section 234A.
- Levy of fee under section 234F
- Exemptions/ deductions under sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE are not available.
Get in touch with our Tax Experts for your Income Tax filing requirements.