Income Tax Returns - Who All Should File?
Another "Income Tax Return season" is around the corner and among the most frequently asked questions we get here are, "Should I file my income tax return" and "Do I need to file my return even if I make a loss in my business or if I have capital loss?"
We are sure if you are reading this, even you would be asking these questions to yourself. To answer this, let's take a look at the primary criteria that might possibly serve as a guide as to who all are liable to file Income Tax Returns:
1) Every Company, Firm, Trust, Society, AOP, BOI shall file their Income Tax Return
2) Every Individual if his/her gross total income exceeds Rs.2,50,000/- in a year (i.e before claiming deductions and exemptions). However, an individual is required to file his/her return even if the gross total income is less than Rs.2,50,000/- under the following circumstances:
a) If the individual is holding any asset including financial asset outside india, or holding any signing authority with any account outside india,
b) If the individual is the beneficiary owner of any asset including financial asset outside india
c) If the individual has deposited more than Rs.1 Crore in one or more current account held with a bank or cooperative society during a financial year
d) If the individual has incurred electricity expenses of Rs.1 Lac or more in a financial year
e) If the individual has undertaken any foreign travel incurring an expenditure of more than Rs.2 Lac in a financial year
f) If the individual is in possession of Credit Card not being Add on Card, issued by any bank
g) If the individual is a member of a club where the admission/entrance fee is Rs.25,000/- or more
One among the many myths associated with return filing is that one need NOT file a return if he/she has only losses to report. Well, clearly this is a wrong belief. We would suggest you file your return even if it is loss so as to enable you to take the advantage of "Carry Forward" and "Set Off" Provisions of law.
If you are in business of trading, manufacturing, service or in any type of business, the loss if any incurred by you can be carried forward including Capital Loss for the following 8 assessment years. In order to avail this benefit, one needs to file the income tax return before the due date.
By not filing the details of loss, one is denying a golden opportunity of the Carry forward and Set Off provisions available.
Which category do you fall into? After reading this, do you think you too are liable to file your Income Tax Returns? If so, we suggest you do it without fail as it can bring many benefits and opportunities to the table. For any query, or to get assistance and advices with filing your returns, feel free to get in touch with our experts at +91 093877 77665 or +91 98474 57527 anytime.
