Who should file Income Tax returns???

In India, the Income Tax Act, 1961, requires individuals, Hindu Undivided Families (HUFs), companies, partnership firms, and other entities to file their Income Tax returns (ITR) if they meet certain criteria. Here’s a breakdown of who should file ITR in India based on different categories:

1. Individuals: Individuals need to file ITR if their total income during the financial year exceeds the basic exemption limit. The exemption limit varies depending on the age and residential status of the individual. For the assessment year 2023-24 (financial year 2022-23), the basic exemption limits are as follows: a. Individuals below 60 years of age: Rs. 2.5 lakh b. Individuals aged 60 years or above but below 80 years (senior citizens): Rs. 3 lakh c. Individuals aged 80 years or above (super senior citizens): Rs. 5 lakh

2. HUFs: Hindu Undivided Families are required to file ITR if their total income exceeds the basic exemption limit applicable to individuals.

3. Companies and Firms: All companies, regardless of their income or loss, are required to file ITR. Partnership firms also need to file ITR irrespective of their income or loss.

4. Other Entities: Trusts, associations, political parties, educational institutions, and other similar entities may also be required to file ITR based on their income and nature of activities.

It’s important to note that even if an individual’s income is below the taxable threshold, they may still choose to file ITR voluntarily. This can be beneficial in cases where they want to claim a refund, apply for a loan, or provide income proof for various purposes.

It’s recommended to consult a qualified chartered accountant or tax professional for personalized advice based on your specific circumstances to ensure compliance with the applicable tax laws.