Who is Required to File Income Tax Return?

Persons Required to File Income Tax Return (A.Y. 2022-23 & A.Y. 2023-24): According to the Income Tax Laws, if a resident individual has earned a total income exceeding the basic exemption limit during the financial year, he or she must file an ITR on a mandatory basis. If you opt for the old income tax regime, the basic exemption amount for an individual will be determined by their age. The basic exemption limit remains the same regardless of age if an individual taxpayer opts for the new tax regime.  We will cover the subject of who is required to file an income tax return in this article. This article answers a common question: Do I need to file an income tax return? Is there a penalty if I fail to file my income tax return?

Who is Required to File ITR? 

An individual with taxable income exceeding the basic exemption limit for the year. For previous and current financial year basic exemption limits, please refer to the following heading.

These taxpayers must file their ITRs before the due date even having taxable income below the basic exemption limit for A.Y.2022-23 and A.y.2023-24.

• A person who has spent more than 2 lakh on an international trip.
• It will be mandatory for individuals who spend more than Rs. 1 lakh on electricity bills or deposit more than Rs. 1 crore in current accounts to file ITRs.
• Individuals with income from foreign countries or assets in foreign countries. Since international income is taxable in India, a resident must include it in their total income.
• A person who has deposited more than Rs. 1 crore with a bank or co-operative bank in the past year.
• If the income of the individual (before any deductions are made under section 10 (38) or 10A or 10B or 10 BA or 54 or 54DB or 54D or 54EC or 54F or 54G or 54GB or under chapter VIA exceeds the basic exemption limit, then the individual must file an income tax return.
• In addition to filing a return of income, if you have more than 25,000 TDS/TCS in general or 50,000 for seniors, you must file a return of income.
• Those who purchase or sell real estate for more than Rs. 30 lakh as well as any investments in stocks, mutual funds, debt instruments, bonds, or payments on credit card debts over Rs. 10 lakh.
• A bank account’s cash deposits and withdrawals exceeding Rs. 10 lakh in a fiscal year, or Rs. 50 lakh in a current account, must be specified on the IT return.

Who is Exempt to File ITR for A.Y. 2022-23 A.Y. 2023-24?

Senior citizens who are 75 years of age or older do not need to file income tax returns if they meet the following criteria.

• The only source of income is pensions and pension interest
• Those who make a bank declaration in form 12BBA to that effect
• Under section 194P, the bank has deducted TDS from their income

Missed to File Income Tax Return for A.Y.2023-23?

For the year 2022-23, the deadline to file an income tax return was 31st July 2022. Hopefully, you have filed your income tax return by the due date. Section 234F of the income tax act allows you to file your income tax return up to 31st December 2022. However, you will have to pay a late fee penalty.

Penalty for Late Filing of Income Tax Return A.Y.2022-23

Individuals Resident (Non-Audit Cases)

Total Income	Fee (Penalty)
Income Below Exemption Limit	No Late Fee
Up to Rs.5 Lakh	Rs.1000/-
More than Rs. 5 Lakh	Rs.5000/-

Basic Exemption Limit

Basic Exemption Limit:  As a result, the basic exemption limit plays a significant role in determining whether income tax returns should be filed mandatorily or not. Below is the basic exemption limit for previous years and the current financial year.

For A.Y.2019-20, A.Y.2020-21, A.Y.2021-22, A.Y.2022-23, A.Y.2023-24: The basic exemption limit is Rs.2.5 Lakh (Rs.3 Lakh for Senior Citizens & Rs. 5 Lakh for Very Senior Citizens) – Check Income Tax Slab for A.Y. 2019-20 Here

For A.Y. 2018-19: The basic exemption limit is Rs.2.5 Lakh (Rs.3 Lakh for Senior Citizens & Rs. 5 Lakh for Very Senior Citizens) – Check Income Tax Slab for A.Y. 2018-19 Here

For A.Y.2017-18: The basic exemption limit is Rs.2.5 Lakh (Rs.3 Lakh for Senior Citizens & Rs. 5 Lakh for Very Senior Citizens)

For A.Y. 2016-17: The basic exemption limit is Rs. 2.5 lakh (Rs. 3 lakh for senior citizens & Rs. 5 lakh for very senior citizens) Check latest income tax slab for A.Y. 2016-17

For A.Y. 2015-16: The basic exemption limit is Rs. 2.5 lakh (Rs. 3 lakh for senior citizens & Rs. 5 lakh for very senior citizens)

For A.Y. 2014-15: The basic exemption limit is Rs. 2 Lakh (Rs. 2.5 Lakh for senior citizens & Rs.5 Lakh for very senior citizens)
For A.Y.2013-14: The basic exemption limit is Rs. 2 Lakh (Rs. 2.5 Lakh for senior citizens & Rs.5 Lakh for very senior citizens)

Note: Rs.3,00,000 for senior citizens and Rs.5,00,000 for very senior citizens (60 Years or above but below 80 years is a senior citizens and 80 years and above is very senior citizens). Income Tax Return filing is mandatory in case of your income is more than exemption limit whether your tax is NIL or refundable)

How to file income tax return – Check Here