Some people think that they do not need to file an income tax return (ITR), if they don’t fall in the tax bracket. However, this is not the case. There are several criteria clearly stating who should file ITR. The last date for filing ITR for the financial year 2019-20 has been extended to January 10, 2021 and people should do it to avoid paying penalty.
The deadline for ITR filing has been extended to January 10 because of the prevailing COVID-19 situation across the country. Usually, the deadline to file ITR is July 31 and people are charged a penalty, in case they miss the due date.
As the deadline for filing ITR is approaching closer, here are criteria which require you to do so:
· Those who have spent Rs 2 lakh or more on foreign travel of self or any other person in the relevant financial year, in today’s case it is 2019-20.
· If a person has put Rs 1 crore or more in one or more current accounts with any bank, he has to file ITR.
· If he incurs an expenditure of Rs 1 lakh or more in the relevant financial year on electricity bill, then he is liable to do it.
· In case, a person, who is a citizen of India, has assets outside the country, he is required to file ITR even if he does not come in the tax bracket.
· If one has signing authority in respect of any bank account outside the country, he has to file ITR irrespective of balance in the account.
Generally, it is said that a person earning more than Rs 2.5 lakh annually must file ITR. It means if his gross total income before deductions comes out to be more than Rs 2.5 lakh, he is required to file the income tax return.
Those who earn more than Rs 5 lakh after claiming deductions and other benefits will be charged Rs 10,000 as late filing fee, if they don’t adhere to the December 31 deadline. The penalty for those whose annual income is less than Rs 5 lakh is Rs 1,000.