An Income Tax Return or ITR is a statement of your income and tax liability for a particular year that you file with the government. This statement provides information about the assessee’s total income, expenses, assets and tax payable thereon.
An ITR is required to be furnished by everyone who is mandated by certain conditions, every year within the due date. The due date for filing income tax return for individuals not liable to tax audit is 31st July of the next financial year. If ITR is not filed within due date, of the tax payer should pay late filing interest and penalty as the case may be.
This article will discuss in detail the conditions mandating the assessee to file a tax return, why a tax return must be filed and the consequences of not filing a tax return.
What is ITR?
- ITR stands for Income Tax Return.
- As previously mentioned, it is a formal statement filed by the taxpayer which contains the income earned, the deductions claimed and taxes payable, along with important disclosures as necessary.
- Income Tax Return is mandatory for satisfaction of certain conditions, and is optional for others.
- ITR can be filed even if the tax liablity is nil for the assessee.
Who are required to File ITR?
Income Tax Return filing is mandatory in India for a person who fulfils any of the following conditions:
If your Total Income is more than the Tax-Free Limit
Any person whose total income in a year exceeds the basic exemption limit, otherwise the tax-free limit must mandatorily file an ITR irrespective of a tax liability or not.
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