• By ADMIN
• Posted 20 May, 2023
• 1106
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Liability to file Income Tax Return (ITR) by Individuals in India

A. Income based criteria.

In general, when an individual (irrespective of residential status) having income exceeding Rs.2,50,000 for a year in India, must file Income-tax Return for the year.

B. Having Foreign Source of Income & Asset

If an individual who is resident (excluding not ordinarily resident) in any case is not required to file ITR due to other reasons also mandatorily required to file the same when, he:-

a. Holds, as a beneficial owner or otherwise, any asset (including any financial interest in any entity) located outside India or has signing authority in any account located outside India; or

b. Is a beneficiary of any asset (including any financial interest in any entity) located outside India.

C. Special criteria

Further, if any one of the following conditions satisfied, then the Individual has to mandatorily file return of income.

1. has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or

2. has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or

3. has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity.

D. Other criteria

In the following cases also, individuals can file Income-tax Return: -

1. In case of claiming refund of income tax

2. For claiming business loss to be carried forward