Important information for Income Tax payers- Cases where Income Tax Return need to be filed

Last Updated On: June 1, 2020, 1:01 p.m.
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Cases where Income Tax Return need to be filed

Income Tax Return is the form in which assessee files information about his Income and tax thereon to Revenue Department. There are various forms such as ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.

As per Section 139 (1), it is mandatory for every person – be it a company, or a firm, or a person other than a company, or a firm, whose total income in respect of which he is assessable under the Income Tax Act, during the previous year exceeded the maximum amount which is not chargeable to income-tax – to file return on or before the due date.

All the taxpayers are mandatorily required to file their ITRs electronically except individuals over the age of 80 years who have the option of filing the ITR in paper format as well.

Additional cases where Income Tax Return need to be filed:

1.Individuals who have paid more than Rs.1,00,000 lakh as electricity bill during a Financial Year. Let us state an example to understand it.

Case A: Suppose Mr. Khan has paid Rs.2,00,000 as electricity bill during the F.Y. 2019-20, which is more than Rs.1,00,000 then Mr. Khan needs to file his income tax return for that F.Y. 2019-20, no matter whether his income is below slab rate.

2.Individuals who have spent more than Rs. 2 lakhs on foreign travel on himself/herself or any other person during a Financial Year. Let us state an example to understand it.

Case: Suppose Mr. Shiv has spent Rs. 3 lakhs (from his savings) for a foreign trip of his parents 25th Anniversary, then as Mr. Shiv has spent more than Rs. 2 lakhs he need to file his income tax return, no matter whether his income is below slab rate. 

3.Individuals who have deposited more than Rs.1 crore in one or more current account during a Financial Year. Let us state an example to understand it.

Case: Suppose Mr. Ram is doing business of copper, during F.Y. 2019-20 he has deposited Rs 1.5 crores in his current account and withdrawn Rs. 1.8 crores from his current account, then Mr. Ram needs to compulsory file his income tax return for F.Y. 2019-20, no matter whether his income is below slab rate also Mr. Ram would be eligible to carry forward of losses if he had suffered any loss during the said F.Y. 2019-20. But, for carry forward of losses the income tax return should be filed within due date.

4.Having Fixed deposits (FD) other than renewals of a person aggregating to Rs. 10 lakh or more of a person in a financial Year. Let us state an example to understand it.

Case: Suppose Mr. Arvind has made a new Fixed Deposit of Rs. 20 lakhs from proceeds of sale of his house property during F.Y. 2019-20, then for the F.Y. 2019-20 he need to file his income tax return, no matter whether his income is below slab rate.

5.Making Cash payments of Rs.10,00,000 or more for credit card bills. Let us state an example to understand it.

Case: Suppose Mr. Shiv has made cash payment of Rs. 2 lakhs of his credit card bill during F.Y. 2019-20, then Mr. Shiv needs to file his income tax return for the F.Y. 2019-20, no matter whether his income is below slab rate.

6.Making Payment of Rs. 2 lakh or more made by any mode including cheque or wire transfer to settle credit card dues during a financial year. Let us state an example to understand it.

Case: Suppose Mr. Ram pays his credit crad bill of Rs. 3 (seen cumulative and not bill to bill details) Lakhs in 2019-20, then Mr. Ram compulsory needs to file his income tax return of 2019-20, no matter whether his income is below slab rate.

7.Purchase of foreign exchange including travellers cheque and a forex card aggregating to Rs. 10 lakhs or more. Let us state an example to understand it.

Case: Suppose Mr. Sham buy forex card in excess of Rs. 10 lakhs in 2019-20, then Mr. Sham needs to file his income tax return of 2019-20, no matter whether his income is below slab rate.

8.Property registrars will have to report to tax authorities of purchase or sale by any person of immovable property. Let us state an example to understand it.

Case: Suppose Mr. Raj sells immovable property during 2019-20 in excess of Rs. 50 Lakhs, then TDS @ 1 % need to be deducted u/s 194IA (of the Income Tax Act,1961) and needs to be deposited within the due date, which needs to be reported to the Revenue Departments. Hence, Mr. Raj needs to file his income tax return during F.Y. 2019-20, no matter whether he has earned any profit on the sale of immovable property and his total income was below slab rate.

Comparison of return filed during F.Y. 2018-19 with F.Y. 2019-20 as on March 2020:

Shown below is the comparison of total number of income tax return filed during the Financial Year 2018-19 with Financial 2019-20.

Growth wise comparison of return filed during F.Y. 2018-19 with F.Y. 2019-20 as on March 2020:

Shown below is the comparison of percentage of total number of income tax return filed during the Financial Year 2018-19 with Financial 2019-20.

 

Shown above are some facts related to the return filed during the Financial Year 2018-19 and Financial Year 2019-20. However, there is decline in some income tax return forms (i.e. ITR-3, ITR-5, ITR-6, ITR-7) but, when seen in totality total number of income tax return filed has been increased in Financial Year 2019-20 when compared with Financial Year 2018-19.

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