Should you file your Income Tax Returns ?
When the financial year closes we hear a lot of people being worried about filing Income Tax Returns, and especially if this is your first year of business or first year of job you might be confused about if you should jump in the same wagon and file your income tax returns. In this article we have tried to clear your doubts about who is mandated by the Income Tax Act to file the Income tax Return and if you are covered in it.
So Income Tax Act has mandated the following people to file their return of income:
- A Company
- A Partnership Firm including a Limited Liability Partnership
- Any other person other than the above if their total income* exceeds basic exemption limit
- Any Person* holding beneficial ownership of any asset located outside India, including financial interest in any entity located outside India
- Any Person* who is a beneficiary of any asset located outside India, including financial interest in any entity located outside India
- Any person who during the previous year, has deposited an amount or aggregate amount exceeding one crore rupees in one or more of their current accounts maintained with a bank or a cooperative society
- Any person who has incurred expenditure for consumption of electricity of an amount or aggregate of amount exceeding one lakh rupees.
- Any person who has incurred expenditure for travel to a foreign country for himself or another person exceeding two lakhs rupees
- Charitable and Religious Trust or institution, Political Parties, Hospital, Medical institutions, Various funds and boards such as Investor Protection fund, Infrastructure Debt fund, Mutual Fund and Business trusts.
Frequently Asked Questions
I have a company but I have no transactions during the year, should I file Income Tax Returns?
Yes, every company is required to file Income Tax Returns even if they have no transactions or turnover during the year.
I have registered my company in the month of March, should I file Income Tax Returns ?
Yes, every company registered before the closure of financial year has to file Income Tax Returns.
I have a unregistered partnership firm, should I file Income Tax Returns ?
Yes, the act mandates every firm including registered or unregistered to file their return of income irrespective of any transactions entered or turnover made during the financial year.
I have few shares of foreign company, should I file Income Tax Returns ?
Yes, any person holding any asset including financial asset such as shares, debentures etc are required to file Income Tax Returns irrespective of income being below basic exemption limit.
I have incurred foreign travel expense exceeding two lakh rupees collectively during the year and not in a single travel, should I file Income Tax Returns ?
Yes, the total amount spent on foreign travel has to be considered.
I have incurred foreign travel expense exceeding two lakh rupees which includes expenses for my family too, should I file Income Tax Returns ?
Yes, if you have spent the amount from your end on foreign travel and the total amount exceeds two lakhs you have to file the return of income.
When should I file my Income Tax Return ?
Basically the Income Tax Act has prescribed three classes of people to determine the due date of filing of return of income:
30th September of Assessment Year
- If you are a company, or
- an assessed having requirement to audit your book of accounts under Income Tax Act or any other law, or
- a working partner of a firm which is required to get its books of accounts audited
30th November of Assessment Year
For assesses who are required to furnish report of Transfer Pricing
31st July of Assessment Year
For all other case of Assesses
Also read our article about 6 reasons why you should file your returns on time.
If you require any assistance in planning your tax or filing your income tax returns please reach our experts at +91-7008804070