Income Tax Return Filing

Individuals

Applicability of Filing Income Tax Returns in India

India follows two income tax regimes, the Old Regime and the New Regime. Under the Old Regime, various deductions and exemptions are available, whereas under the New Regime, most deductions and exemptions are not permitted.

An individual is required to file an ITR if their total taxable income in India during the relevant Financial Year (April to March) exceeds the basic exemption limit INR 2,50,000 under the Old Regime and INR 4,00,000 under the New Regime.

However, filing an ITR becomes mandatory in the following cases, even if total taxable income does not exceed the basic exemption limit:

• Aggregate deposits in one or more current accounts exceed INR 1 crore during the financial year
• Aggregate deposits in one or more savings bank accounts exceed INR 50 lakh during the financial year
• Expenditure on foreign travel exceeds INR 2 lakh in the financial year
• Electricity consumption expenditure exceeds INR 1 lakh in the financial year
• Total business turnover exceeds INR 60 lakh during the financial year
• Gross professional receipts exceed INR 10 lakh during the financial year
• Aggregate TDS/TCS credits equal or exceed INR 25,000 (INR 50,000 for senior citizens) during the financial year
• Individual holds any foreign asset, has signing authority in a foreign account, or derives income from a foreign source
• The individual intends to claim a refund of taxes or carry forward any business or capital loss

Partnership Firm

ITR filing in India is an annual compliance requirement for all taxpayers, and partnership firms are no exception. A non-resident Indian (NRI) who owns a partnership firm in India is also required to file the firm’s ITR and adhere to all applicable tax compliances.

Applicability of Filing Income Tax Returns in India

A partnership firm is required to file an ITR in India for the relevant Financial Year (April–March), irrespective of whether its total taxable income exceeds the basic exemption limit.

Company

ITR filing in India is an annual compliance requirement for all taxpayers, and companies are no exception. A non-resident Indian (NRI) who owns a company in India is also required to file the company’s ITR and adhere to all applicable tax compliances.

Applicability of Filing Income Tax Returns in India

A company is required to file an ITR in India for the relevant Financial Year (April–March), irrespective of whether its total taxable income exceeds the basic exemption limit.

Trust

ITR filing in India is an annual compliance requirement for all taxpayers, and trusts are no exception. A non-resident Indian (NRI) who manages or establishes a trust in India is also required to file the trust’s ITR and comply with all applicable tax regulations.

Applicability of Filing Income Tax Returns in India

A trust is liable to file an ITR if its total taxable income in India, without giving effect to applicable exemptions under income tax law, exceeds the basic exemption limit for the relevant Financial Year.

Advance Tax

Advance tax is income tax paid by a taxpayer during the financial year itself. Under this mechanism, taxpayers estimate their annual income and pay tax in specified instalments rather than as a single payment at year-end.

Applicability of Advance Tax

Advance tax becomes payable if a taxpayer’s total tax liability for the financial year exceeds INR 10,000. It is not required for resident senior citizens (60+ years) who do not have income from business or profession.