The list of individuals who are legally required to file income tax returns has lately had many exemptions eliminated by the Income Tax (I-T) Department.
People should determine whether they are obliged to file income tax returns by July 31, 2022, which is the deadline for the fiscal year 2021–2022 (assessment year 2022-23).
If you miss the deadline, the I-T Department may charge you late fees or take legal action against you.
If a resident individual’s income is higher than the exemption limit set for the year, then the person is asked to file tax return.
For those choosing to file ITR under the new regime, then the exemption limit is ₹ 2.5 lakh.
Under the old regime, the exemption limit is ₹ 2.5 lakh for those below the age of 60; ₹ 3 lakh for those between the ages of 60 and 80 (senior citizens); and ₹ 5 lakh for those above the age of 80 (super senior citizens).
Additionally, the I-T department has specified that individuals whose total TDS/TCS (tax deducted at source/tax collected at source) in the financial year are higher than ₹ 25,000 and ₹ 50,000 for senior citizens, also need to file their ITRs.
If an individual’s gross income exceeds the exemption limit before claiming capital gains tax exemptions, individuals with sources of foreign income or holding foreign assets, individuals who have paid an electricity bill of more than ₹ 1 lakh in a single bill or in aggregate throughout the year, and individuals who have spent more than ₹ 2 lakh for foreign travel on himself or any other person.