Many taxpayers find the income tax return filing procedure to be tedious and time taking. Moreover, late filing of Income Tax Return attracts fines and penalties. So to avoid these consequences let us see if you are required to furnish Income Tax Return in India for Financial Year 2018-2019 or not.
There are certain mandatory situations where you need to furnish an Income Tax Return in India as per the Income Tax Act. Here is the list of mandatory Income Tax Filing cases:
Where the gross total income (before any deduction under Section 80C to 80U) crosses the limit of 2.5 Lakhs INR in the financial year 2017-2018. It shall be noted that this limit for senior citizen is 3 Lakhs INR whose age is between 60-80 years and for super senior citizen it is 5 Lakhs INR.
a. Equity shares in a company
b. Any unit of equity oriented mutual funds
c. Business trust unit
d. Where the amount of sale exceeds 2.5 Lakhs INR in a financial year.
a. Any nonprofit university, educational or medical institution
b. A charitable trust/religious purposes/a political party/research association
c. Trade union or news agency
d. Infrastructure debt fund, or
e. Any other authority, body or trust.
Irrespective of the fact that if you are NRI or not, anyone whose income exceeds the mark of 2.5 Lakhs INR in the financial year 2017-18 is required to file an income tax return in India. However, it shall be noted that for an NRI is required to file an Income Tax Return to the extent of income earned or accrued by him in India.
E-filing Income Tax Return has definitely promoted the digital India movement. As Income Tax department has seen the growth in the e-return filing they are thinking to digitalize all Income tax returns in the nearer future. However, currently you are required to file the following income tax return electronically:
Moreover, those people can only file offline Income Tax Return whose age is above 80 years/an individual/HUF whose income does not exceed the limit of 5 Lakhs INR and who has not claimed any refund on the ITR.
There are two types of penalties that an assessing office may levy on the individual who is not filing the return on time and they are
However, it shall be noted that penalty is limited to 1,000 INR for those who have income up to 5 Lakhs INR.