It is that time of the year again as we start to get our papers in order and get set to call our chartered accountants or head to the Income Tax website to file our IT returns. This year due to the coronavirus pandemic, the final date for filing the IT returns has been pushed by the government to December 31, 2020 instead of July 31, 2020 for the assessment period of April 1, 2019 to March 31, 2020.
So a question on everyone’s mind is who all needs to file the IT returns every year? The answer is simple as all individuals who have taxable income or anyone who satisfies the required conditions for filing the returns under the Income Tax Act for the prescribed period need to file the returns.
We take a detailed look at who all need to file the IT returns:
1. Individual/HUF who is less than 60 years of age and has an annual income more than Rs 2.5 lakh which is above basic exemption limit has to file income tax returns. The basic exemption limit for the senior citizens has been capped at Rs 3 lakh while for those who are more than 80 years, this limit is Rs 5 lakh.
2. Companies have to file ITR irrespective of the fact whether they make a profit or loss that year.
3. A firm or an individual or a Hindu Undivided Family (HUF) whose books of account are required to be audited under section 44AB need to file the IT return online with a digital signature.
4. Taxpayers claiming relief under section 90, 90A or 91 need to e-file their IT return.
5. Any person having any assets outside India or signing authority in any account abroad also needs to file their return electronically.
6. If the person filing the return wants refund then he needs to compulsorily file return.
7. Any person/business who wants to carry forward or set off loss then also return filing is mandatory.
8. All charitable trusts, which may run for religious purposes, research or even for political parties, medical institutions or hospitals, also need to file their returns.
9. Anyone who has entered into any transaction under the Annual Information Return needs to file their return as well.
10. A taxpayer who is required to furnish a report of audit under various IT sections will also need to file their IT return electronically.