We have bid goodbye to the Financial Year 2013-14 and now the tax filing season will begin for Assessment Year 2014-15. Are you wondering if you are required to file a return in India? Read on to know more.
The IT Department is identifying several non-filers who have done high value transactions and those could be penalized for non-filing of returns or non-payment of taxes.
Let’s understand whether you are required to file an Income Tax Return in India.
Mandatory Filing – In the following situations the Income Tax Act, it’s mandatory for you to file an Income Tax Return in India if you are:
- A resident individual whose gross total income exceeds Rs. 2, 50, 000 for FY ending March 2015.
- A company or a firm irrespective of whether you have income or loss during the financial year
It is also mandatory if you are a resident individual and have an asset or financial interest in an entity located outside of India or are a signing authority in a foreign account. This does not apply to NRIs or RNORs.
You are required to file an income tax return when you are in receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
I am an NRI. Am I required to file income tax return in India?
NRI or not, any individual whose income exceeds Rs. 2, 50, 000 (for FY ending 31st March 2015 or Rs. 2, 00, 000 for FY ending 31st March 2014) is required to file an income tax return in India. Note that for an NRI, income earned or accrued in India is taxable in India.
You must also file an income tax return when:
- you have to claim a refund
- you have a loss you want to carry forward
- Income tax return as proof
A proof of return filing may also be required at the time of applying for a loan or a visa.
What happens when you don’t file an income tax return?
An interest is levied when you do not file a return or you file a return after the due date under section 234A. Under section 271F, a penalty of Rs 5,000 is payable when you fail to file a return.
Source: clear tax & IT website