Income Tax Return commonly known as ITR is to be filed by each individual in each financial year. Through ITR filing in India, the individuals inform the government about the income they have earned, investments made and taxes paid by them. As per section 139(1) of Income Tax Act, 1961, every person being a company or a firm; or being a person other than a company or a firm, if his total income is above the maximum amount which is not chargeable to income-tax, he will have to furnish a return of his income.
From the above provision, it can be inferred that generally, ITR is to be filed by the individuals, if their income exceeds the threshold limit set up by the Ministry of Finance, Government of India. However, it is still advisable to file ITR even if the income does not exceed the specified threshold limits.
Threshold limit for filing Income Tax Return
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In certain specified cases, even if your income does not exceed the specified limits stated above, you still will have to Income Tax Return compulsorily before December 31, 2020. These certain specified cases are as follows:
– Individual has spent an amount or aggregate of amounts exceeding ₹2 lacs for himself/herself or any other person for travel to a foreign country
– Individual has deposited an amount or aggregate of amounts exceeding ₹1 crore in one or more current accounts maintained with a bank or co-operative bank
– Individual has paid electricity bill exceeding ₹1 lac in a single bill or on aggregate basis during the financial year
– Ordinarily resident individual having income from foreign countries and/or assets in foreign countries and/or having signing authority in any account outside India
– If an individual’s gross total income exceeds the exemption limit before claiming tax exemption on capital gains under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB of the Income Tax Act, 1961.
So make sure to file your Income Tax Return before the due date 31st December, 2020 for the Financial Year 2019-2020, Assessment Year 2020-2021.
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