Who is Eligible for ITR Return?

The Income Tax Act, 1961, mandates Income Tax Return (ITR) filing for certain individuals and entities. Understanding who falls under this obligation is crucial to avoid penalties and ensure compliance.

Who is Eligible for ITR Return?

1. Individuals:

1. Resident Indians:

I. Income Exceeding ₹5 lakh: If your total income from all sources, including salary, investments, rent, etc., exceeds ₹5 lakh in a financial year, you must file an ITR. This applies even if you’re below 60 years old and claiming the standard deduction.

II. Senior Citizens (60-80 years): If you’re between 60 and 80 years old and your income exceeds ₹3 lakh, filing an ITR is mandatory.

III. Senior Citizens (above 80 years): Individuals above 80 years with only pension income are exempt from filing ITRs unless they have other taxable income exceeding₹5 lakh.

IV. Business or Professional Income: If you have income from a business or profession, even if it’s below ₹5 lakh, you need to file ITR-3.

V. Tax Deductions/Exemptions: If you claim deductions or exemptions beyond the standard deduction, regardless of your income, filing an ITR is necessary.

VI. Foreign Income/Assets: If you have any income or assets abroad, you must file an ITR.

VII. Company Directors: Directors of any company, regardless of income level, are required to file ITRs.

2. Non-Resident Indians (NRIs):

Income chargeable to tax in India: NRIs with income chargeable to tax in India, even if below ₹5 lakh, need to file ITRs. This includes income from investments, property rentals, etc.

2. Hindu Undivided Families (HUFs):

Income exceeding ₹5 lakh: If an HUF’s total income from all sources exceeds ₹5 lakh in a financial year, filing an ITR is mandatory.

3. Companies:

All registered companies: Regardless of their income level, all registered companies, including private limited companies, public limited companies, and one-person companies, are obligated to file ITRs.

Additional resources:

How to File ITR?

Types of ITR | Which ITR Should I File?

What is Income Tax? | Tax Slab | Deductions Allowed

How to Save Tax in FY 2023-24?

New Income Tax Slab for FY 2023-24